HomeUncategorizedWarren Buffett was wrong about a ‘rat poison’ Bitcoin portfolio, data shows By Cointelegraph

Warren Buffett was wrong about a ‘rat poison’ Bitcoin portfolio, data shows By Cointelegraph

April 22, 2023

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© Reuters.

Legendary investor Warren Buffett sees no value in (BTC), infamously calling it “rat poison squared.” But data shows that adding Bitcoin to a so-called “rat poison portfolio,” an equally weighted portfolio of Berkshire Hathaway (NYSE:), Microsoft (NASDAQ:), JPMorgan (NYSE:) and BlackRock (NYSE:) stocks, would have produced much better returns for The Oracle (NYSE:) of Omaha.

Since 2014, allocating only 2.5% Bitcoin yearly to the rat poison portfolio increases returns by nearly 20% with reduced risks, according to independent market analyst Alpha Zeta. For now, the portfolio’s returns stand around 16%.

Rat poison portfolio with Bitcoin allocations. Source: Alpha Zeta
Correlation between Bitcoin and Berkshire Hathaway, Microsoft, JP Morgan and BlackRock stocks since 2014. Source: Alpha Zeta
Rat poison portfolio drawdown including Bitcoin’s 2.5% allocation. Source: Alpha Zeta
The number of non-zero Bitcoin addresses since 2009. Source: Glassnode