"It's probably rat poison squared": Warren Buffett launches fresh tirade on cryptocurrency
- Author: Wendy Palmer May 09, 2018,
May 09, 2018, 5:11
"If you look at Apple, I think it earns nearly twice as much as the second most profitable company in the United States". "In the end, you make your money out of productive assets". While others see potential weakness in the company for fear of slowing iPhone sales, Buffett sees a fantastic company that was worth buying an additional 75 million shares in addition to its previous 165 million shares, and stated that he would like to own 100% of the company.
He said investors now are much better off owning US stocks, whose prices are elevated but not in a "bubble", and it would take a "nanosecond" for him to choose stocks over 10- or 30-year USA government bonds now yielding around 3 percent.
"Nobody buys a farm based on whether or not it's going to rain next year or not", Buffett explained.
Berkshire Vice Chairman Charlie Munger says he's also optimistic that the two countries will find a way to resolve their trade disagreements without creating lasting ill will toward each other. "It will come to a bad ending". "To me, it's just dementia".
"I think that people who are professional traders that go into trading cryptocurrencies, it's just disgusting. It's kind of a pure 'greater fool theory' type investment".
Also speaking on CNBC's early morning talk show Squawk Box was Microsoft co-founder Bill gates, who agreed with Buffett on the value of Apple's stock. He has often compared the cryptocurrency to gold, saying that both assets are strictly speculative and don't produce earnings and dividends like stocks do.
That's why some cryptocurrency experts think that investors should ignore Buffett's and Munger's repeated bitcoin bashing. "You can get that and it will feed on itself for a while - and sometimes for a long while - and sometimes to extraordinary numbers".
Buffett: "The nice thing about buying Apple is that I don't care whether anyone mentions Apple again".
Analysts say a list of hard-line demands that the Trump administration handed China this week could make it even more hard to resolve a trade conflict between the world's two largest economies. When I buy Apple, I know that Apple is going to repurchase shares. If it's cheaper my money goes even farther.
But there's another reason Buffett loves Apple besides its tech gadgets: Apple's massive cash hoard, which allows it to buy back a lot of its own stock.