It’s no secret that business magnate Warren Buffett hates cryptocurrency but it’s time to delve into why as the mega-investor donates a staggering $4 billion to charity.
On Tuesday, June 14 2022, Buffett donated about $4 billion to the Bill & Melinda Gates Foundation Trust and four family charities as the billionaire continues his pledge to give away almost all his wealth.
$4 billion in shares to charity
Reuters reports the 91-year-old Berkshire Hathaway chairman’s donation consists of roughly 14.4 million of the multinational company’s Class B shares, which, at their closing price today, were worth $277.64 each.
Broken down between the charities, 11 million of the shares will go to the Bill & Melinda Gates Foundation Trust, while 1.1 million will go to the Susan Thompson Buffett Foundation – a quiet but massive financial supporter of pro-abortion activities and population control policies. The charity is named after Buffett’s late first wife.
The last 770,000 shares will go to each of three charities run by the billionaire’s children, Howard, Susan and Peter: the Howard G Buffett Foundation, the Sherwood Foundation and the Novo Foundation.
Since 2006, Buffett has donated more than half his Berkshire shares, which at their time of sale were worth $45.5 billion. The businessman has still retained 16 per cent of his company’s shares and holds one-third of its voting power.
Buffett’s three reasons to hate cryptocurrency
Buffett clearly knows how to make it in the investment industry, so it may seem odd the billionaire has a vocal hatred of one investment method, cryptocurrency.
Cryptocurrencies have grown in popularity in the past ten years with millions invested on a daily basis – but not by Warren Buffett.
Buffett doesn’t like the currency for three reasons, Yahoo! reports, it doesn’t have “unique value”, he doesn’t think it counts as money, and he simply doesn’t understand it. To be honest, how many of us do?
In 2020, Buffett told CNBC: “(Cryptocurrencies) don’t reproduce, they can’t mail you a check, they can’t do anything, and what you hope is that somebody else comes along and pays you more money for them later on, but then that person’s got the problem.”
“Whether it goes up or down in the next year, or five or ten years, I don’t know. But the one thing I’m pretty sure of is it doesn’t produce anything,” Buffett said. “It’s got a magic to it and people have attached magic to lots of things.”
As for not understanding it, he said: “I get in enough trouble with things I think I know something about. Why in the world should I take a long or short position in something I don’t know anything about?”