Productive vs. Unproductive Assets

My interpretation of the Bitcoin comment is more about productive vs. unproductive assets. If you look at the preamble he compares bitcoin farm land and real-estate. In general Buffet prefers productive assets, those that generate income.

For unproductive assets, it is clear that he prefers CASH (T-Bills) as liquidity and predictability are super important. I think at one point Buffet did buy a bunch of silver - which was strange and maybe the exception that proves the rule; but I for one don’t want BRK to hold any bitcoin and I would suggest most shareholders feel the same.

tecmo

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Didn’t he say something along the lines that silver has more day to day use than gold as his explanation ?

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Didn’t he say something along the lines that silver has more day to day use than gold as his explanation ?

Possibly, but I think most investors in silver view it as a value store. In terms of utility, bitcoin has some; but mainly in economies were the fiat currency is unstable. For most of the developed world the utility is greatly diminished (in fact I would argue it has negative utility currently, as to transact with it requires an exchange/conversion).

tecmo

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