Warren Buffett’s famous value investing means he checks the intrinsic value of a company before buying its shares. The companies that find a spot on his screen are those that show they can endure.
His strongest criticism of cryptocurrencies has been that they have no intrinsic value. His observation that cryptos do not produce anything kept Berkshire Hathaway (BRKB) away from digital banking, crypto firms and NFTs for a long time.
That has been changing, however. Buffett’s recent SEC filings show that the highly acclaimed value investor is opening up to some of these more speculative assets, at least indirectly.
Buffett’s most notable recent purchase that opens him up to cryptos is Activision Blizzard (ATVI).
The acclaimed long-term investor purchased 14.66 million shares of Activision Blizzard in December 2021 and increased his stake to 64.3 million in March, then to 68.4 million in June. His total stake is now a whopping 9.5% of total shares.
Though his first purchase was before Microsoft (MSFT) announced an agreement to acquire Activision, later purchases were made after the news.
The company, which Microsoft hopes to acquired for $68.7 billion, is the biggest deal in the software giant’s history and signals Microsoft’s entry into the emerging metaverse experiments with virtual experience and digital assets, including digital currencies and NFTs. The deal faces antitrust objections in the U.K., however.
Buffett’s Stake in Digital Banking and NFT
The Oracle of Omaha bought $1 billion of NU Holdings (NU) in February. Earlier, it took a $500 million stake in January before the company’s IPO in December 2021.
Buffett rarely takes positions in pre-IPOs or IPOs, and typically waits to see a few quarters and even a few years before weighing in. Two recent exceptions have broken that rule: Snowflake (SNOW) is one and NU Holdings is the other.
Snowflake’s data cloud marketplace is already seeing growth in NFTs. Berkshire Hathaway has held 6.1 million shares of Snowflake since picking them up in September 2020, when the company went public….