Loving the love I got for this (#1475688) last month so I'm repeating the exercise...
Our fiat overlord Berkshire Hathaway, a long-standing conglomerate of (mostly) privately held companies built by the value investors/bitcoin haters Warren Buffett and Charlie Munger -- recently passed on onto new generation -- is unbelievably conservative.
OK, I mean fine, markets look frothy and if management sees no good use for capital, might as well hold cash... but my god:
Berkshire disclosed that it had sold $24bn worth of stocks, with purchases of $15.9bn, stretching its net sales streak to 14 consecutive quarters. It marked Berkshire’s largest quarter of stock sales from its $288bn equity portfolio since 2024, when it dumped a large portion of its stake in Apple. Net income more than doubled from a year earlier to $10.1bn. Berkshire’s preferred measure of profitability, the operating earnings of its hundreds of subsidiaries, rose 18 per cent year-on-year to $11.3bn.
This graph looks like a Saylor bitcoin-acquisition graph...
...except what it's measuring is Berkshire's cash/Treasury holdings in billions per quarter....except what it's measuring is Berkshire's cash/Treasury holdings in billions per quarter.
My god.
I honestly don't know whose balls are bigger: Saylor for taking this gigantic (but pretty safe) bitcoin bet, or the Berkshire team for sitting on the world's largest pile of evaporating fiat dogshit.
Worked out for them in the past, and they've been around and successful so hard to blame 'em. Still. Future belongs to one of these guys' strategy I'd say...
They are betting the market will give them an opportunity to deploy a substantial portion of the evaporating pile of dogshit. I am not so sure.
There will be corrections but I don’t think we see P/E ratios drop to historical norms.
Maybe there'll be a GFC again and they can scoop up some excellent business in liquidity problems
Act quick. The firehose will be ready.
And I think that is part of the problem. The market knows there is a Fed/Government Put.
For maximum funzies, it's Strategy in a few years having amassed the largest pile of bitcoin in history... And Buffetts disciples getting orange pulled, using the cash pile to buy Strategy
I think when Warren is gone Greg Abel will make a foray into Bitcoin at some point. He is an energy guy. I think he will get it.
Berkshire Hathaway buying shares in Strategy would truly be one of the financial events of all time.
What if they dumped it into STRC?
Lock in 11.5% on that pile of shit
Perhaps a safer bet would be for Berkshire to simply create its own stablecoin. Its already buying treasuries with its cash pile, so buying treasuries and issuing a stablecoin against it would allow it to earn same amount of passive income from underlying treasuries....with the benefit that they could earn a secondary income stream on the stablecoin it issued (ie. make overcollateralized loans in defi).
Obviously shouldn't do that with 100% of their cash pile, but it seems to me some type of similar strategy will soon become the norm as it creates a greater-than-treasury income potential with about the same risk profile.
Yes, but it wouldn't trigger Den quite as much
that's all you're after, huh. You think I'm fueled by anger and frustration?!
Yeah, probably right -.-
that'd be some sweet, vindication. I'd turn Saylorboi simply for the mainstream media headlines of that
This is why I stopped taking the OnRamp guys seriously! They poop on STRC and advise people to buy BTC And FUCKING TREASURIES!!
One time long ago I paid for a comment on Marty and Odell’s show RHR and I asked a simple question
Would you rather buy hosted miners? (this is after they pitched compass mining to all their listeners and then backed out once compass mining got over extended and fired their CEO)
Or a government bond.
Odell said neither but if he had to choose he would select a bond!!!
I would rather die broke then knowingly buy a bond?! The US treasury market is the biggest scam we have going. We throw the word trillion around like it’s nothing!