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Warren Buffett Backs Fintech
Summary: Warren Buffet, the “Sage of Omaha,” now has more companies with direct/indirect exposure to cryptocurrencies in his portfolio. According to a securities filing late Monday, Warren Buffett’s Berkshire Hathaway, an American multinational conglomerate holding, dropped a portion of its Visa and Mastercard holdings and increased their stocks in Nubank, the largest fintech bank in Brazil. ...
Warren Buffet, the “Sage of Omaha,” now has more companies with direct/indirect exposure to cryptocurrencies in his portfolio.
According to a securities filing late Monday, Warren Buffett’s Berkshire Hathaway, an American multinational conglomerate holding, dropped a portion of its Visa and Mastercard holdings and increased their stocks in Nubank, the largest fintech bank in Brazil.
Nubank is a Brazilian neobank that is crypto-friendly. The current relationship between Nubank and crypto is through Easynvest. Easynvest is a Nubank-acquired broker which is offering a bitcoin ETF (QBTC11). This could be another way to get more people in the crypto space.
Here is what Easynvest said about BTC: “Bitcoin is on everyone’s lips. The virtual currency is increasingly the subject of numerous news stories in the press, and a quick search is enough to discover that even billionaires like Elon Musk and Ray Dalio have already taken an interest in this type of asset. But did you know that there are already new ways to invest in cryptocurrencies? We are talking about Bitcoin ETFs and even funds focused on this type of asset”.
Berkshire Hathaway announced on Monday that it purchased $1 billion worth of Nubank Class A stock in late 2021. In addition, it sold billions worth of Visa and Mastercard stock signaling a huge shift away from credit companies to fintech.
Fintech, short for financial technology, is used to describe new technology that seeks to improve the delivery and use of financial services.
Berkshire Hathaway’s recent announcement marks a clear shift towards fintech. It also shows that the traditionally cautious Buffet is willing to accept the potential future fintech has in the modern world.
The “Oracle of Omaha” has even downplayed the emergence of decentralized finance solutions like Bitcoin (BTC). It’s fair to say now that this attitude is slowly starting to change.
While Buffet has not directly invested in BTC, it’s clear that he is gaining indirect exposure by backing companies that are a part of the crypto sector. The Berkshire boss is directly backing fintech by backing the Brazilian neobank. However, it won’t be long before some of his investments currently not backing crypto will start, as that is the current trend in the market.
Author: Tyler Irvin
