Why isn’t he an idiot?

During his long career Warren Buffett has demonstrated his excellent judgment and ability to act sensibly on many occasions. It is certainly not just another whale in the ocean. He is Warren Buffett, the most successful investor in history. Now Max Keizer, the television clown, comes to say that he’s an “idiot” and that his reputation is at stake because he doesn’t believe Bitcoin in the style of – if you don’t believe in Jesus, you will go to hell go -. Really? Bitcoin is not for everyone. There is no need to be a fascist and become a Jehovah’s Witness in the financial world. Bitcoin is not Herbalife. Idiot is the one who thinks that other idiots are. I would trust Buffett with my money two by three, but I would not give Max Keizer a Satoshi. Who is the idiot

Our hypersensitivity to criticism is evidence of an inherent uncertainty that our immaturity reveals. It’s a psychological thing. At school, for example, the boys who are bullied the most are the ones who get the most out of jokes. Security seems to radiate trust and deter bullies. The puppy that screams the most is the first to be attacked by other dogs. The world is extremely cruel to the weak.

Read on: According to Max Keizer, Buffett “killed his reputation” for being an idiot for Bitcoin

Why isn’t he an idiot?
Why isn’t he an idiot?

Buffett has not invested in Amazon, Apple, Facebook, Microsoft, Tesla or Netflix. Well, in Apple yes, but now in the company. In Tim Cook’s apple. He never invested in Steve Jobs’ Apple. His company Berkshire Hathaway has also recently invested in Amazon, but this investment was not made directly by Buffett. This purchase was made by someone on the team, but not by Buffett as such.

Buffett said very clearly that he doesn’t invest in technology companies simply because he doesn’t understand technology.. And he never deviates too far from what he calls the “competence circle”. Neither Bill Gates, Jeff Bezos, or Mark Zuckerberg have said that Warren Buffett is an idiot. On the contrary, it is well known Buffett enjoys the admiration and respect of the key figures in the technology world. Bill Gates is his personal friend. And I know that Steve Jobs called him a couple of times to ask him.

Many have pointed out that Buffett made a mistake by not investing in the big technology companies in their early stages. This criticism is somewhat absurd to me because these omissions were accidentally lost but do not appear in the Berkshire books. I mean, neither Warren nor his company lost money on these non-purchases. And that’s because Warren looks at his area of ​​expertise. And within this competitive circle, he made mistakes, but his successes were much bigger. Not for nothing, Warren Buffett is the most successful investor in history and his company has beaten the SP 500 90% of the time. But that doesn’t mean it’s perfect.

Read on: Warren Buffett expects the market to decline and Bitcoin to fall with it

For many it is incomprehensible The path to excellence requires specialists. I mean we can’t be at every party. We have to be like a hunter who hunts the same thing over and over again. Like the eagle. There are people who sing, dance, write, paint, cook and act. And how do you do so many things? Well, they’re all doing it wrong. Has Michael Jordan jeopardized his reputation as a mediocre baseball player? Of course not. His fans understood perfectly that his specialty was not baseball.

For a second, let’s say a sports commentator on TV has described Michael Jordan as an idiot for his “pitiful” role as a baseball player and added that his reputation as an athlete has gone down the drain. What would we think of this commentator? Would we think he’s an idiot? Well, that’s exactly what we would most likely think of this guy. And we would be right. This guy would be a complete idiot.

Warren Buffett is a very conservative investor who not necessarily looking for big profits, but for stability and security. His rule number one is: “Don’t lose moneyAnd his rule number two is: “Don’t lose money“” He and his partner Charlie Munger have built a company for the conservative investor who wants peace of mind rather than high returns. It is the philosophy of your company and it is the philosophy of the people who entrust your money to you. It is an eagle that eats rodents, and giving strawberry ice cream to it can cause indigestion. You made a lot of money, but you followed a conservative policy. Is he an idiot for that?

Buffett doesn’t invest in many things. Do not invest in goldfor example. He does not like it. Why? Because gold is basically a speculative instrument. I mean The price mainly depends on supply and demand. And it is extremely difficult to make an accurate valuation of an asset of this type, since the demand usually depends on unpredictable variables. Sounds familiar? That’s why he prefers to invest in companies that are his specialty.

Buffett has been warning about the stock market for years it is overrated. According to him, the roof ratings and GDP do not justify them. For this reason sYour company has accumulated a huge pile of cash. Buffett He also doesn’t like having a lot of money in his pocket, but has always preferred to wait for the right moment to make an acquisition. And that’s why many thought that Warren Buffett would start buying during this crisis. During the last crisis, he bought a lot of banks. And many of us already speculated that we would see more acquisitions in the airline and hospitality sectors this time.. It was believed that his silence was related to the fact that he was very busy. It turns out that we are all wrong. Warren doesn’t buy. Indeed, it sells. The surprise of the century!

This is when this crisis is becoming increasingly worrying. Buffett always buys in times of crisis and has never paid much attention to macroeconomics. If the price is right, he buys. Despite the fact that prices have plummeted, he is now selling. It sold all of its shares in the aviation industry. Why?

Well i don’t know but i assume that Warren has received last quarter financial reports from his companies and the numbers are really worrying. In other words, many of their companies need capital injections to recover. And your stack of cash is not enough. Perhaps He took out the calculator and realized that it will take a long time for the airlines to recover and need a lot of capital to do so.. He prefers to sacrifice his positions in the aviation sector to place money in more promising sectors, but which now need support. He doesn’t buy because he needs money to take care of his house. This is my reading of his unusual behavior during this crisis.

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Now Warren Buffett and Bitcoin. Is he really an idiot? Well, that’s how I see it: I’m up to my neck in Bitcoin. I live and breathe Bitcoin every day, but if Warren Buffett calls me and says he is thinking about investing in Bitcoin and wants advice from me, I would honestly tell him:Uncle Warren, not-.

Why? First you do not know that. They are very old and don’t even have a computer. If you want to buy bitcoin, you have to enjoy the street. Don’t buy Bitcoin for fashion or printing from others. It makes no sense. Don’t do things out of obligation.

Secondly Bitcoin is very volatile and unstableand you’re not used to such madness. You are very old, dear uncle, and you do not need these problems at your age. That doesn’t go well with your temperament or the temperament of your partners. These adrenaline injections are for people with more adventurous spirits. And you can have a heart attack.

Third The Bitcoin market is still very immature and the regulatory uncertainty is just too big for the type and size of the company you run. Remember that you are dealing with other people’s money. It is not your style either. Charlie Munger would make fun of you. And they’re too old to fight for nonsense. In conclusion, Uncle Warren, you’d better stay calm. It is better that I invest in Bitcoin when I am young and come from the new school. I’ll tell him later how it went.

Well, I would say that to my good Uncle Warren, with no regrets.

I would say to Max Keizer: Max, you’re an idiot.

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