Warren Buffett, the billionaire investor who helped shape Berkshire Hathaway in a world investment power, withdraws as CEO at the end of the year – but his disgust for Bitcoin (BTC) will probably live in the company.
Buffett, who will remain chairman of the board of directors, described Bitcoin as a “square rat poison” and a “gaming token”, signaling strong ideological opposition to digital assets. His heritage on this question throws a shadow on his successor, Greg Abel, who now takes the reins of daily leadership.
For investors hoping for a change in the position of Berkshire’s cryptography, the chances seem slim.
“I would be very surprised if there is a significant change in the attitude of Berkshire towards bitcoin,” said Meyer Shields, managing director of KBW. “On the merits, I think there is a big difference between the Buffett / Munger attitude towards technological stocks (which they admitted not to understand) and their opposition expressed at cryptocurrency.”
Currently, Chairman and Chief Executive Officer of Berkshire Hathaway Energy and vice-president of non-assurance operations in Berkshire, the CEO entering, Abel, will not make sudden movements which could report a break from Buffett and recently deceased by Charlie Munger, added shields. “I expect Greg Abel initially to avoid everything that might look like a marked gap of the values of Buffett and Munger, even if it does not agree.”
During a meeting with the shareholders, Buffet expressed its flexibility to diversify in other currencies if the American economy should weaken more, saying that “there could be […] Things happen in the United States that […] makes us want to have many other currencies. However, given the continuous criticism of buffet of cryptocurrencies, it seems unlikely that it includes Bitcoin.
However, the succession was managed with a characteristic flair. “Another brilliant example of managing a major situation for Berkshire,” said Macrae Sykes, portfolio manager at Gamco Investors. He praised Buffett’s decision to keep the news under the Wraps to the shareholders’ meeting, allowing him to “answer questions and take advantage of the commitment with the shareholders without overhanging the succession”.
Sykes considers the continuous presence of buffett to the board of directors as a stabilization force: “shareholders should accommodate this transparent transition, but also the confidence that Warren is going nowhere.”
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