We respect Mr. Buffett and Mr. Munger for all that they have accomplished with their shared 150 years of investment experience. This dynamic duo has made it a life-long crusade to educate people on their investment thesis. The appreciation from owning Berkshire (BRK/A) since 1965 speaks for itself, but comments about technology and innovation are way beyond their expertise. Buffett admitted he missed the boat in his career by not investing in technology. While success has been found with the investment in Apple, the foray into IBM was a big miss. (Note the chart does not date back to the founding of Berkshire, but the Shareholders reports spells it all out clearly.)
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Nevertheless, in reading Cinthia Murphy’s report, What We Learned from Buffett and Munger at BRK 2022, I was reminded of the many parallels that exist between the HODLers of Berkshire stock and those of Bitcoin and crypto. With this in mind, perhaps they are not as pure as the headlines read? One billion dollars is not chump change.
We are not picking a fight with Berkshire investors or value investing in general. It is, however, a surprise to see Berkshire listed among the top shareholders of NU Holdings, given the other shareholders that are listed as investors are all aligned with growth mandates. At our core in the ETF Think Tank, we believe in diversification and have advocated for value investing. Readers of these Blog posts will recall us highlighting Distillate Capital (DSTL).
Summary
In Omaha, folksy is cool and simple is straight forward. Thank you, Cinthia Murphy, for attending the BRK2022 event. We all have much to learn from 150 years of experience. The question is whether the wisdom of value investing is transferable to Fintech. Moreover, even if NU Holdings is the leading-edge disruptor of NEO banks in Brazil, why are you saying disparaging comments about crypto when you are trying to capitalize on a platform that is offering 54 million people access? Stay in your lane!
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