The renowned investor assured that bankruptcies “have not ended.” However, he tried to calm depositors. what else did he say
By iProfessional
12/04/2023 – 14,43hs
Warren Buffettknown as the oracle of Omaha and considered by many to be the greatest investor in history, said more US banks are likely to fail, but depositors must be sure that they will not lose their funds.
“Bank failures are not over“, said the president and CEO of Berkshire Hathaway in an interview on CNBC. The “silly decisions” of bank managers should not “terrify the entire citizenry of the United States for something that should not scare them.”
Buffett said he is willing to bet that no depositor will lose money next year. Still, the billionaire investor cautioned that shares in troubled banks are not value investments because shareholders are likely to lose even if the government takes steps to protect depositors.
“They’re not going to save shareholders,” Buffett said after being asked if battered shares in regional banks, including First Republic Bank, would be a “bargain.”
Buffet’s predictions about the banking sector are in line with those made recently by Jamie Dimon, chief executive of JPMorgan Chase, who said that the banking crisis in the United States that caused the markets to plunge last month is an episode that “still It’s not over” and will be felt for years.
“Bank failures are not over”
Buffett said the structure of the Federal Deposit Insurance Corporation (FDIC), which collects the valuations of banks with the deposits it insures, means the federal government won’t lose money while it sorts out the deposits. bankrupt banks.
Buffet believes that the banking crisis is not over
“People are under the impression that the FDIC is the US government,” Buffett said. “But the cost of the FDIC, including the cost of their employees and everything, is borne by the banks. So banks have never cost the federal government a dime“.
The sales of Berkshire’s bank shares are not critical of the management of those banks, Buffett said, but rather speak to their cooling sentiment in the sector in general.
Buffet, against cryptocurrencies
Warren Buffett has repeatedly made it clear that he has no interest in cryptocurrencies.
The one who for many is the best investor of the 21st century ensures that bitcoin and the rest of the cryptocurrencies do not produce anything. He doesn’t criticize them harshly, he just makes it clear every time that it may not be an asset he cares about. He simply disdains them. They don’t go with him.
In fact, as already noted in Business Insider Spain, he even stated that If you were offered all the bitcoin in the world for $25, you’d turn it down. That’s how clear the Oracle of Omaha is.
Warren Buffett has repeatedly made it clear that he has no interest in cryptocurrencies.
But, what are the reasons that he puts forward to pass over cryptocurrencies olympically? In recent years, it has been leaving data that can be summarized in 3 reasons.
The expert investor likes to put his money in assets that produce something. That is why, for example, he prefers farmland.
It is a repeated argument. In an interview for CNBC in 2020, he stated that the cryptocurrencies have no real value. “They don’t reproduce, they can’t send you a check, and you just wait for someone to come along and pay you more for them, and then you pass the problem on to that other person.”
At its birth, the objective of cryptocurrencies, and especially bitcoin as the first to be launched on the market, was to become a means of payment. It has succeeded in El Salvador —with dubious consequences—, however, there are more and more voices pointing to the fact that they will only remain as very high-risk investment products.
Buffett is one of these. In another interview with CNBC, but this time in 2014, the Oracle of Omaha assured that the bitcoin failed the test to be considered a currency: “It’s not a durable medium of exchange and it’s not a store of value,” he said.
