Business & Investment

Warren Buffett: Here’s a way to forget about Bitcoin and earn millions of dollars!

Warren Buffett has never been involved in a stock market hype. In general, he has invested much of his property in unloved, undervalued, boring businesses. In fact, many of his investment careers have been to find opportunities that have been overlooked or forgotten in the market. Conversely, when the market is hot and speculative, Buffett sits on the sidelines editing cash for a future market crash.

Bitcoin pays dividends and produces nothing

Perhaps that’s why he violently avoided (and encouraged others) popular trends like cryptocurrencies and Bitcoin. Last February, he said: “Cryptocurrencies are basically worthless and produce nothing. They can’t duplicate, mail checks, or do anything. What you want is someone coming in and later They pay more, but they have a problem. From a value perspective: zero. “

In essence, when you buy Bitcoin, Like other bland commodities, you just want supply to outpace supply. However, unlike businesses, Bitcoin cannot be valued based on revenue / cash flow, management expertise, good operations, market advantage, or its balance sheet value.

Frankly, his claim is reminiscent of all investments, not just cryptocurrencies. If you want to guess part of your portfolio with Bitcoin, do so. However, be prepared for high volatility, keep track of your transactions and have a quick index finger.

If you want to build millions like Warren Buffett, the best bet is to invest the old-fashioned way.First, find a great listing business It has a strong balance sheet, frugal / wise management, and consistent / growing cash flow. Second, invest in them. Third, just wait patiently. Sometimes the best strategy for investors is patience. As Warren Buffett said, “The stock market is a device for transferring money from impatient people to patients.”

This Canadian stock reflects Berkshire Hathaway’s strategy

If you’re into a “turtle vs. rabbit” investment strategy, you should consider owning it Brookfield Asset Management (TSX: BAM-A)(NYSE: BAM).. If there is a Canadian company that illustrates Warren Buffett’s contrarian investment approach, it’s BAM.It’s like Berkshire Hathaway Of alternative assets.

BAM owns and manages one of the world’s largest diversified portfolios of real estate, infrastructure, renewable energy, distressed debt, insurance and private equity assets. Take institutional capital (pension funds, financial institutions, sovereign wealth funds), acquire slightly ambiguous assets (debt distress, operational problems, or negative market bias), refinance, and then capital and management Inject expertise.

The next thing we know is that they are very attractive assets and generate large amounts of cash flow. These assets are held for yield or sold to investors with low cost of capital for significant profits.

Now is the perfect time to become a BAM shareholder. At the lowest interest rates ever, BAM can refinance its assets and fix historically high-yielding spreads. Similarly, with bond yields near zero, financial institutions are flocking to BAM to help meet their income goals. Finally, due to the large amount of financial uncertainty, there should still be value-gaining opportunities in the coming months and years.

Count this strain like Warren Buffett

Combined with these factors, BAM can double its paid capital and earnings over the next five years. Today, this strain is valued even by Warren Buffett. It trades at a 20% to 25% discount on net asset value and most analysts’ price targets.Given this opportunity, I would like to forget about Bitcoin and get a stock that makes a million dollars One of the best businesses in Canada.

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Warren Buffett: Here’s a way to forget about Bitcoin and earn millions of dollars!

https://www.fool.ca/2021/01/23/warren-buffett-forget-bitcoin-heres-how-to-make-millions/ Warren Buffett: Here’s a way to forget about Bitcoin and earn millions of dollars!

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