Buffett Invest $600-M In Fintech Firms

Nov 01, 2018 at 21:44

After years of bashing virtual tokens, Warren Buffett has poured in as much as $600 million on the financial technology-focused companies.

Berkshire Hathaway, where Buffet is president and CEO, reportedly invested around $300 million each in Brazilian payment processor StoneCo Ltd. and Paytm, the parent company of India’s largest mobile-payments service.

This is according to a Wall Street Journal article which noted that the investments in both the big fintech firms with a focus on emerging markets were made in the past recent months.

Buffett has long thumbed down cryptocurrency as a channel for investment— going so far as to calling it “probably rat poison squared” in a CNBC interview.

Touted as the Oracle of Omaha, Buffett had likened bitcoin investing to gambling due to the its volatility, making trading mostly speculative in nature.

Buffett’s expertise helped him rake in about $81 billion in his lifetime. One of his biggest gains was made when he made a bet on the Bank of America’s rebound post-financial crisis. This strategy more than doubled his $5 billion investment to $12 billion.

Although the renowned investor had made several forecasts that came true and earned him billions of dollars, history shows that Buffett’s analysis is not absent of misjudgements.

In 1989, Buffett had described the airline industry as a “death trap” to investors, citing “terrible” outcomes from past investments.

However, this stance saw a turnaround in 2016 when Berkshire unveiled having made investments in several US-based airline firms.

Buffett said the earlier view can be attributed to the negativity surrounding airlines during the 20th century, a bad period outlasted by the industry. Eventually, the industry proved its maturity to service passenger-demand.

Aside from the airline blunder, Buffett has also admitted having been passed by opportunities in tech giants Google and Amazon. He also admitted having missed out on these due to the lack of understanding on the technical nature of their operations.

With this revelation of Berkshire’s $600 milion fintech investment, the whole crypto industry will be anticipating to hear from Buffett a similar admission of mistake over his harsh criticisms against virtual tokens.