Veteran Investor Goes All-In on Bitcoin.
Veteran value investor now has 50% of his networth in Bitcoin!
First off, I want to wish everyone a happy new year! May 2022 bring more peace, joy, happiness, and prosperity to your life!!
A veteran investor is going all in on Bitcoin. Bill Miller is an old-school traditional value investor young folks may have not heard of before. Bill Miller managed the Leg Mason Opportunity Trust funds where he beat the S&P 500 consecutively for 15 years between 1991 and 2005. He eventually left Legg Mason to go start his own firm called Miller Value Partners which manages three main strategies which include the income strategy, opportunity equity, and deep value strategy.
In his interview with Consuelo Mack on WealthTrack Bill Miller was asked about his interest in Bitcoin and how it all began. It all began when Bill was at the Sun Valley Conference hosted by reputable tech, media, and telecom investment banking firm Allen and Company. During this conference Wences Casares, who is also known as Bitcoin’s “Patient Zero” for introducing Bitcoin to the Silicon Valley community, talked about how he himself started buying Bitcoin. Wences has a fascinating story. Wences’ family lives in Argentina. During their time in the country the government has seized their citizens’ assets, nationalized the banks, and given them hyperinflation. But Wences went ahead and said that Bitcoin does not have government control. Basically, Bitcoin cannot be touched by the government. It is a peer-to-peer decentralized independent network. Wences further went ahead and said that if you have Bitcoin the government cannot take your Bitcoin away from you and called it an insurance policy. This prompted Bill to buy Bitcoin back in 2014 when it was just around $200. He then bough Bitcoin again when it fell down to around $30,000 during the summer of 2021.
Currently Bill Miller has 50% of his net worth in Bitcoin. Part of this Bitcoin allocation include heavy Bitcoin based stocks like MicroStrategy and Stronghold Digital (SDIG). His other 50% of his portfolio is in Amazon. What I appreciate a lot about Bill Miller is that unlike many traditional value investors Bill has been early to invest in key technologies. Bill has been investing in Amazon since 2004. He was early to realize the potential of e-commerce. Now he is betting big on Bitcoin. Even arguably the two best investors in the world, Warren Buffett and Charlie Munger, were behind the internet and high-tech trend. Warren Buffett’s first technology investment was Apple when he bought the iPhone maker in 2016. Charlie Munger famously called Bitcoin “worthless gold” and wished the currency did not exist. He even praised China for banning Bitcoin. But Bill Miller, who calls himself a student of the Benjamin Graham school of investing, is also putting his money into emerging technology like Crypto, Blockchain, and E-Commerce.
Bill Miller is a true Bitcoin bull. He believes that it is only the beginning for the cryptocurrency given that so much more money will be pouring in by venture capitalists and institutional investors. This is 100% spot on from Bill Miller. There are so many institutional investors like hedge funds, private investors, institutions, endowments, foundations, and sovereign wealth funds that have not yet allocated its funds to Bitcoin. Also, Bitcoin and Blockchain based technologies are only starting to evolve and play a vital part in people’s day to day lives. With more money pouring into Bitcoin and Blockchain technologies expect the price of Bitcoin to further skyrocket. I second Bill Miller’s though that we are in the early stages of Bitcoin. I see Bitcoin right now just like how internet and technology investing was in the mid 1990s. If you were to put money into Microsoft and Amazon in the mid 1990s or Google in the early 2000s you would be a millionaire now. Especially during these downtimes, it is not too late to get into the next generation of tech stocks and Bitcoin.
Last but not least, Bill Miller is not the only high-profile investor betting big on Crypto. Mark Cuban has confirmed that 80% of his investments are in Crypto.
Links:
CoinDesk article on Bill Miller.
What I write here is not investment advice. This is mainly written for educational purposes. Please consult an investment advisor before investing. Investing in anything involves risk. Please be careful and diligent before investing.
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