MicroStrategy Inc. co-founder Michael Saylor has launched a scathing critique of Warren Buffett’s Berkshire Hathaway Inc., claiming the company is squandering billions of dollars by not investing its massive cash reserves in Bitcoin. During a recent podcast interview with Patrick Bet-David, Saylor highlighted Berkshire Hathaway’s staggering $325 billion cash stockpile. He argued that this colossal sum is actively losing value, estimating a loss of approximately $32 billion annually. Saylor’s calculation is based on the assumption that Berkshire Hathaway is achieving a meager 3% after-tax yield, while the cost of capital is significantly higher – around 15%. This translates to a substantial negative real yield of 12%, according to his analysis.
Despite this sharp criticism, Saylor expressed unwavering confidence in his ability to sway Buffett’s opinion on Bitcoin. He boldly asserted that a private conversation with the Oracle of Omaha would likely result in Buffett recognizing Bitcoin’s potential. Saylor even went so far as to suggest that the late Charlie Munger, Buffett’s long-time business partner, would likely share this sentiment.
However, Saylor acknowledged he hasn’t yet directly contacted Buffett. He attributes this to the challenge of persuading individuals deeply entrenched in traditional corporate thinking to embrace a fundamentally different investment paradigm. Saylor believes that many individuals with substantial capital holdings are resistant to considering alternatives like Bitcoin, hindering them from potentially substantial gains. He emphasized the need for an open mind and willingness to accept paradigm shifts in the investment landscape.
Saylor’s outspoken advocacy extends beyond Buffett; he’s actively seeking opportunities to convince other large corporations holding massive cash reserves to adopt Bitcoin. He recently announced his intention to present a concise, three-minute pitch to Microsoft’s board of directors to encourage Bitcoin investment. This highlights his proactive approach in promoting Bitcoin adoption among institutional investors.
This public disagreement underscores the deep divide between established financial titans and the burgeoning cryptocurrency market. Buffett’s famously negative views on Bitcoin – labeling it ‘rat poison squared’ – stand in stark contrast to Saylor’s bullish predictions and aggressive promotion of the cryptocurrency. The contrasting viewpoints fuel ongoing debate within the investment community regarding the long-term viability and value of Bitcoin as a significant asset class.
At the time of writing, Bitcoin’s price was trading at $93,354.74, showcasing a 1.70% increase over the previous 24 hours. MicroStrategy shares also experienced a 3.13% surge in pre-market trading, suggesting potential investor enthusiasm surrounding Saylor’s assertive stance and Bitcoin’s price movement. The ongoing clash of opinions between these prominent figures is likely to continue shaping the narrative surrounding Bitcoin investment in the coming months and years.
