Warren Buffett often has his upper lip curled in disdain when the topic of investment in cryptocurrency or bitcoin is brought up. He is popularly known as a non-believer in bitcoin and cryptocurrency. According to him, Bitcoin isn’t an investment because it doesn’t produce anything. He terms cryptocurrency as “rat poison” and says that “its neither a currency” nor “a way of investing.” Despite his scornfulness relating to cryptocurrency and bitcoin, his company Berkshire Hathway is reportedly investing two $300 Million in two Fintech payment firms. This move makes it clear that Berkshire is ready to be a part of the crypto party.
The Wall Street Journal (WSJ) confirmed on Tuesday that Berkshire Hathway, Warren Buffett’s multinational company has invested $600 Million in two Fintech firms. It has further been reported that the investment of the company is lately managed by Todd Combs, one of Berkshire’s two portfolio managers.
The conglomerate or the blue chip of American companies has also paved its way in India by investing $300 Million in India’s largest mobile-payments provider, Paytm. Further, the firm spent $300 Million to purchase IPO shares in Brazillian payments processor, StoneCo. last week.
These moves of Berkshire left many investors wondering where the firm is going in the absence of Buffett. Berkshire is popular as a usual investor in companies like American blue-chip companies like Coca-Cola, Wells Fargo, Bank of America and Phillips 66. Two years back, the company had a stake in long-standing aversion to airlines and four major carriers including Delta and America. Its current investment in Fintech is observed as a divergence from its usual investment options.
Buffet revealed a few days back that Berkshire will no longer invest in the tech sector. But as Comb steps in, his expertise of investing in the tech sector has helped the company hold a spot in the Paytm board. He comes from a background of investing in Tech companies. Before stepping in Berkshire, he ran a fund focused on Financial companies like Castle Point Capital and J.P. Morgan.
Currently, Berkshire Hathway is seen as widening its portfolio sector allocations and it has a sum of $711.9 Million in Assets Under Management (AUM).