Warren Buffett’s Berkshire Hathaway is now almost worth the entire Bitcoin (BTC) market after its valuation crossed $1 trillion.
Buffett is doing fine without Bitcoin in 2024
Berkshire Hathaway’s stock, BRK.A, rose 0.75% on Aug. 28 to push its valuation above the trillion-dollar mark. The stock has rallied by over 29% so far in 2024, surpassing the S&P 500 index’s 17% rise and trailing Bitcoin’s 31% gains in the same period.
Bitcoin’s market cap is $1.18 trillion as of Aug. 29.
BTC/USD and BRK.A year-to-date performance chart. Source: TradingView
The minor difference between Berkshire Hathaway’s and Bitcoin’s year-to-date returns illustrates an interesting point. Despite Warren Buffett’s well-known aversion to cryptocurrencies and Bitcoin “rat poison,” his investment strategy has pretty much matched Bitcoin’s performance in 2024.
In other words, Bitcoin holders are doing just as well as the “Oracle of Omaha.”
Meanwhile, Berkshire has achieved impressive 2024 profits through its diverse portfolio of businesses spanning insurance, energy, manufacturing, retail, and services. These segments delivered $22.8 billion in profit during the year’s first half, marking a 26% increase compared to last year.
The portfolio’s winners include BNSF Railway, Geico car insurance, Berkshire Hathaway Energy, Dairy Queen ice cream, Brooks running shoes, Ginsu knives, and the World Book encyclopedia.
In addition, Berkshire has a major stake in Apple, albeit having sold half of its holdings earlier this year. Thanks to the sales, the firm holds $276.9 billion in cash and cash equivalents as of June 30, mostly in US Treasury bills.
BTC/USD vs. Apple stock daily year-to-date performance chart. Source: TradingView
Buffett has no plans to redirect his cash holdings to Bitcoin despite the latter’s growing relevance as a financial asset, especially following the launch of Bitcoin spot exchange-traded funds (ETF) in the US in January.
Bitcoin continues to beat Berkshire Hathaway
Berkshire Hathaway stock has consistently underperformed Bitcoin in the past decade, dropping 99.98% since its 2011 top versus BTC/USD.
BRK.A/BTCUSD monthly performance chart. Source: TradingView
According to results from the Nakamoto Portfolio simulator, incorporating even just 1% Bitcoin into Berkshire Hathaway’s existing portfolio, with its top stock holdings including Apple, Bank of America, and American Express, could have boosted returns from around 185% to 207% on a five-year adjusted timeframe.
Source: Nakamoto Portfolio
Moreover, allocating 5%–10% of the portfolio to Bitcoin could have achieved impressive returns of 130.97-279.64% for Buffett in the same period.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
