Source: Talking about Li, Talking about Things
Yesterday (March 16), a friend sent me a message with a screenshot that roughly said Buffett's Berkshire plans to invest part of its $334.2 billion cash position into Bitcoin. As shown in the figure below.
Then this partner asked me if this news is true, and if it is, he plans to buy some Bitcoin now. My reply was: Do not participate in trading based on any uncertain news, and don’t directly ask me this question; if you do, it means I don’t recommend you buy.
Why do I respond this way? Because if the other party misses out on buying, at most they will just call me an idiot, but if I let them buy and they lose money and come back to seek compensation, then I would truly be the idiot, bringing myself trouble.
I then looked further with curiosity at the person who posted this message (the Twitter screenshot above), who is Crypto Rover, a crypto KOL with 1.1 million followers. I don't know much about this big V and won't comment on them. What I want to say is that I couldn't find the media source for this message, it might be some insider news they received, or it might be something they said casually to attract attention (traffic). Such personal opinions or news can just be taken lightly.
1. The Oracle of Omaha, Warren Buffett, and Bitcoin
If you want to care about any news, it’s best to conduct your own multi-angle investigation or understanding. Next, we can provide some simple supplementary data on Buffett and his company, and everyone can combine more information to make their own judgments:
According to public data, Warren Buffett's company Berkshire Hathaway achieved a net profit of $88.995 billion for the entire year of 2024, with 71% of its equity investments concentrated in American Express, Apple, Bank of America, Chevron, and Coca-Cola.
By early 2025, the company led by Buffett had accumulated approximately $334.2 billion in cash reserves, setting a new historical record. As shown in the figure below.
So, the $334.2 billion figure mentioned in Crypto Rover's tweet is correct. Let's make a hypothesis (guess): if Berkshire Hathaway really considers putting some of its $334.2 billion cash reserve into Bitcoin in the future, it would definitely be a positive sign for the development of the crypto market (though it wouldn't be friendly for ordinary people, as the entry of more traditional institutions means it will become increasingly difficult for ordinary people to make money), which could drive wider acceptance and adoption of cryptocurrencies in the traditional financial sector.
However, based on Buffett's past public statements, he does not seem interested in Bitcoin, for example:
In 2018, Buffett openly stated at the shareholder meeting: Bitcoin is a bubble with no practical use.
In 2022, Buffett stated at the shareholder meeting: Even if you hold all the Bitcoin in the world and sell it to me for $25, I wouldn't want it because it doesn't serve any purpose.
Meanwhile, Berkshire Hathaway has been indirectly enjoying the 'benefits' brought by cryptocurrencies in recent years, for example:
In 2020, Berkshire invested approximately $735 million in Snowflake, a company providing cloud data storage and analysis solutions. Although its main business currently does not directly involve cryptocurrency trading, it also provides some foundational services for many companies in the crypto industry.
In 2021, Berkshire invested in the Brazilian digital bank Nu Holdings twice (the first investment was $500 million in June 2021, and the second was an additional $250 million in December 2021). As of March 15, 2025, Nu Holdings has a market value of approximately $65.85 billion, and Berkshire holds about 86.439 million shares of Nu Holdings, currently valued at about $1.014 billion. Nu Holdings is the largest digital bank in Latin America and also provides cryptocurrency trading services, allowing users to buy and hold Bitcoin, Ethereum, and other crypto assets (Nu Holdings has also launched a cryptocurrency platform, Nubank Cripto).
In summary, on one hand, Buffett himself says he is not interested in Bitcoin, while on the other hand, the company he leads also invests in some companies with crypto operations. Doesn’t that feel quite contradictory?
Actually, I feel that this matter is not something to be tangled about; no one (company) would go against making money. Although Buffett is famous for 'stable' investments, it doesn't rule out that there are some more aggressive investment managers within Berkshire who could invest a few billion in crypto-related companies.
Therefore, when we see news like 'Warren Buffett is laying out a strategy for Bitcoin,' we don't need to be too surprised; it's just entertainment news. A few billion dollars of indirect investment won't change the crypto market's trends unless Berkshire directly invests in companies like MicroStrategy or personally buys Bitcoin. However, at this stage, that seems unlikely.
2. What is your investment style?
In previous articles before Talking about Li, we have outlined many investment strategies and methodologies. Different people may have different investment styles based on their capital size and risk preferences.
If we categorize broadly, we can roughly divide investment styles into four types:
- Technical Analysis Investment
- Value Investment
- Macro Investment
- Blind Investment
Technical analysis investment is more suited for short-term trading, mainly based on various indicators for trading, such as looking at trends, volume-price relationships, and various candlestick patterns to gain returns in trading. Value investment focuses more on long-term investment, paying more attention to the long-term fundamentals and development vision of the 'target,' pursuing long-term profits. Macro investment primarily uses methods similar to those employed by big players like Soros, emphasizing sensitivity to global economic and political events, seeking investment opportunities by analyzing the potential impacts of these events on currency, stock, and commodity markets. As for blind investment, it mainly refers to those who blindly follow trends without their own investment strategy and never conduct their own research.
Of course, investing is a complex matter. In practice, some may combine technical, value, and macro perspectives for comprehensive consideration. But from my own experience, I believe a good investment strategy must be simple, capable of simplifying complex matters, and allowing one to efficiently repeat execution. To put it in a trendy way: you need to form your own trading system.
Then, based on forming your own trading system, what we need to do is continuously cycle through executing and optimizing strategies.
Additionally, another very important aspect is: to continuously strengthen your mental resilience. We have already outlined quite a bit on mental construction in last year's e-book (Blockchain Methodology), here we will continue to list a few points simply, for example:
- Don't be afraid of selling too early; compared to selling too early, losing profit due to being stuck is far more painful. Selling too early only means missing out on some potential gains, but being stuck could mean losing everything (many altcoins or low-quality coins end up going to zero).
- If you're worried about selling too early, the best way is to implement a gradual selling profit-taking strategy. Withdrawing the principal and leaving the remaining part to strategize is a completely different mindset from going all in to strategize; the latter is more akin to gambling.
- Don't compare yourself to others; compare yourself to yourself. Just because someone says to sell Bitcoin at $150,000 doesn't mean you have to do it. For instance, do you know their position and cost? Do you know their investment style?
- Those who can genuinely make big money do not casually bring others along to make money. Some (to avoid being criticized, I won’t say all) who claim they can help you get rich are often just looking to collect tuition fees from you (or even deceive you) and then use that as their capital. For example, someone who claims to be a whale, making hundreds of millions of dollars easily each year, do they really spend all day live-streaming just to spread knowledge? Isn’t the ultimate goal still to collect your few thousand dollars in tuition fees? In fact, many active so-called KOLs in many fields are outsiders. The reason they are active is to attract more traffic because traffic is their income or capital (of course, there’s no derogatory meaning here, just that everyone has different thoughts and ways to make money). Alternatively, you can calmly think: for example, if a project can easily make A6 by pulling money, why would they sell you a few dozen dollars’ worth of A6 secrets?
- Reasonably optimize your goals. If banks are thrilled with a 4% return on wealth management, why aren't you satisfied with a 1x return in the crypto space? Why chase after 10x or 100x... Is money in this field just blowing in the wind, specially prepared for your wealth? If you are a financial consumer in the stock market, then in the crypto market, you may become a new liquidity provider.
- Selling during an upward trend is a difficult choice, but often a wise one; never try to sell at the peak (or buy at the bottom).
