The Spectacular Continuation of Berkshire’s Love-Hate Relationship with Bitcoin

What You Need to Know:

Warren Buffett — who once called bitcoin “rat poison squared” — is stepping away from the CEO role at Berkshire Hathaway.
Greg Abel is taking the helm, but don’t expect a crypto love-fest just yet.
Industry experts predict Abel will stick to Buffett’s old-school, anti-bitcoin stance.

Ah, Warren Buffett. The man, the myth, the legend — who famously described bitcoin as “rat poison squared.” If you ever wanted to know how to alienate an entire generation of crypto enthusiasts with just a few words, well, Warren wrote the book. But, as the world’s most self-assured investor takes his well-earned retirement from the CEO role at Berkshire Hathaway, don’t get too excited. His contempt for digital assets will likely live on, haunting his successor, Greg Abel, like an annoying guest who just won’t leave.

Buffett will stay on as chairman, still running the show from the shadows (a very comfy shadow, I assume, given his fortune). So, for those hoping that Abel would suddenly embrace the wonders of cryptocurrency — prepare for disappointment. It’s not going to happen. At least, not without a monumental shift that would surprise even the most seasoned Berkshire Hathaway insiders.

“I would be very surprised if there’s a meaningful change in Berkshire’s attitude toward Bitcoin,” said Meyer Shields, managing director at KBW. Well, that’s the understatement of the year, isn’t it? It seems there’s a vast difference between Buffett and Munger’s tech skepticism (they’ll admit to not understanding it) and their deep-seated hatred for cryptocurrency. But hey, who needs understanding when you have billions to manage, right?

And then there’s Greg Abel, who currently heads up Berkshire Hathaway Energy (because why wouldn’t you want to tackle both energy and anti-bitcoin sentiments in one job?). Despite being handed the keys to the Berkshire kingdom, Abel is likely to tread cautiously. After all, rocking the boat — especially when that boat is worth hundreds of billions — is not exactly on his to-do list.

Even when Buffett has said he’s open to diversifying into other currencies if the U.S. economy collapses, don’t expect Bitcoin to be invited to the party. He might consider other currencies, but bitcoin will remain firmly in the “not on my watch” category. Honestly, if Buffett ever changes his mind about bitcoin, we might as well just throw all logic out the window.

But it wasn’t all doom and gloom. Buffett, ever the master of drama, managed to keep the whole succession thing under wraps until just the right moment — like a good mystery novel. “Another brilliant example of handling a major situation for Berkshire,” said Macrae Sykes, portfolio manager at GAMCO Investors. You’ve got to admit, the man knows how to make even boardroom transitions sound exciting.

So, while the world may have its eyes on the crypto market, Berkshire Hathaway will continue to remain blissfully oblivious. And don’t worry, Warren’s not going anywhere anytime soon — just like that one relative who always shows up uninvited. Just when you think you’ve gotten rid of him, he’s still on the board.

2025-05-05 22:16

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