Berkshire Hathaway, the $ 503 billion conglomerate Warren Buffett sold Goldman Sachs to buy shares in Barrick Gold, a Canadian gold company. Max Keizer, the founder of Heisenberg Capital and an early Bitcoin investor, says so This could help BTC (BTC) hit $ 50,000.
Berkshire Hathaway’s quarterly shareholders’ report shows that Buffett has trimmed his position in most of the major banksFortune reported on August 15. The company sold a significant portion of its shares in JPMorgan Chase, Wells Fargo, and PNG.
What Buffett’s decision to take a position in gold instead of banks shows about Bitcoin
Buffett’s decision to completely close Berkshire’s position in Goldman Sachs follows the bank’s second-highest quarterly revenue of $ 13.3 billion. This suggests Buffett is not comfortable playing in the banking industry long term.
Instead, Buffett bought a single share of Barrick Gold, and that stock reflects what has happened to gold for most of 2020. The company is a Canada-based gold mining company that has grown 45% so far this year. After investing in Berkshire, stocks rose 8.11% in after-hours trading.
Max Keizer, an avid Bitcoin investor who has invested in companies like Kraken and Bitfinex, Believes Buffett’s gold investment could benefit Bitcoin. Said A positive sentiment about gold implies a higher valuation for Bitcointhat some consider “digital gold”. Keizer said::
“The $ 100 trillion fund management business is less than 1% invested in gold. Buffett is now moving into gold. A global minimum allocation of 5% is expected for gold. This implies $ 5,000 for gold. Expect a global bitcoin investment. Allocation of 1% ($ 1 trillion). That means $ 50,000 for Bitcoin. Wait for Paul Tudor Jones (PTJ) to go up to 10%. “
Bitcoin price weekly chart. Source: TradingView.com
A former L / S stock portfolio manager and founder of the Ikigai Fund, Travis Kling, made the same point. Regarding Buffett’s 1998 skeptical statement about gold that it was useless, Kling said::
“It was announced today that Berkshire Hathaway has just bought its first gold stocks, and the reasons are now obvious. In case you’re wondering what the next few years will be for Bitcoin, this is what Buffett will think of gold in 1998.. “
Bitcoin has shown some correlation with the precious metal lately
Although Bitcoin has outperformed gold since April, the price development between gold and BTC shows some correlation. Skew’s data shows that The two assets have grown together over the past four months.
Correlation between Bitcoin and Gold. Source: Skew.com
The simultaneous rally of Bitcoin and gold since the collapse of the world market in late March shows this More and more investors are viewing BTC as a store of value.
Recently, MicroStrategy, an intelligence conglomerate valued at $ 1.4 billion, bought Bitcoin for $ 250 million. The company said BTC would act as the company’s primary treasury asset, Recognition of Bitcoin as a store of value and a potential safe haven.
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