Bitcoin vs Berkshire Hathaway: Digital Gold vs Oracle of Omaha
Compare Bitcoin with Berkshire Hathaway, Warren Buffett's legendary conglomerate. The ultimate clash between crypto and value investing.
Performance Comparison
Chart shows percentage returns from the start of the selected period. Interactive: hover for details.
What is Bitcoin?
Bitcoin is a decentralized digital currency created in 2009, designed to operate without central authority. Warren Buffett has famously called it 'rat poison squared.'
With a fixed supply of 21 million coins, Bitcoin offers scarcity that proponents believe makes it a hedge against fiat currency debasement.
Despite Buffett's criticism, Bitcoin has grown into a trillion-dollar asset class held by major institutions and endorsed by investors who disagree with value investing principles.
What is Berkshire Hathaway?
Berkshire Hathaway is a multinational conglomerate holding company led by Warren Buffett since 1965. It owns businesses including GEICO, BNSF Railway, and Dairy Queen, plus major stock holdings.
Berkshire's portfolio includes large positions in Apple, Coca-Cola, Bank of America, and American Express. Buffett's value investing philosophy has made Berkshire one of history's most successful investments.
Unlike most stocks, Berkshire doesn't pay dividends - Buffett prefers to reinvest profits. The company holds over $150 billion in cash, waiting for attractive investment opportunities.
Bitcoin vs Berkshire Hathaway: Key Differences
Bitcoin and Berkshire represent philosophically opposite investments - speculative digital asset versus the pinnacle of value investing.
Investment Philosophy
Scarcity-driven value, network effects, and adoption
Intrinsic value based on earnings and cash flows
Warren Buffett's View
Called it 'rat poison squared' and 'a gambling token'
His life's work and the embodiment of value investing
Income
No dividends or distributions
No dividends - profits reinvested for compound growth
Volatility
Extreme volatility with major boom-bust cycles
Lower volatility, steady compound growth
Track Record
15 years with exceptional but volatile returns
60 years of ~20% annual returns under Buffett
Risk Factors to Consider
Bitcoin Risks
- Extreme price volatility
- Regulatory uncertainty
- No underlying cash flows or earnings
- Technology and security risks
- Dismissed by legendary investors
Berkshire Hathaway Risks
- Buffett succession (age 93)
- Cash drag if good investments aren't found
- Insurance business catastrophe risk
- Conglomerate discount
- Size makes outperformance difficult
Best Use Cases
When to Choose Bitcoin
- Digital store of value
- Inflation hedge
- Portfolio diversification
- Alternative to fiat currency
- Speculative growth investment
When to Choose Berkshire Hathaway
- Quality compounding investment
- Diversified business exposure
- Value investing allocation
- Defensive equity holding
- Long-term wealth building
Frequently Asked Questions
Warren Buffett has repeatedly criticized Bitcoin, calling it 'rat poison squared,' 'a gambling token,' and saying he wouldn't buy all the Bitcoin in the world for $25. He believes it produces nothing and has no intrinsic value.
Over Bitcoin's lifetime, yes - it has dramatically outperformed Berkshire. However, Berkshire has a 60-year track record of ~20% annual returns with much lower volatility. Different time periods show different results.
Buffett is arguably the greatest investor ever, but he admits he doesn't invest in things he doesn't understand. His value investing framework doesn't apply to Bitcoin. Many successful investors disagree with his Bitcoin view.
It depends on your philosophy. Berkshire offers proven value investing with lower risk. Bitcoin offers asymmetric upside with higher volatility. Some investors hold both as complementary investments.
More Comparisons
Bitcoin vs S&P 500
Compare Bitcoin vs S&P 500 returns since 2010. See which investment performed be...
Bitcoin vs Gold
Compare Bitcoin vs Gold investments with historical data since 2010. See returns...
Bitcoin vs JPMorgan Chase
Compare Bitcoin vs JPMorgan Chase (JPM) stock. Analyze returns, risks, and how c...
Bitcoin vs Tesla
Compare Bitcoin vs Tesla (TSLA) stock performance. See historical returns, volat...
Ready to Compare Your Investment?
Use our free calculator to see how your investments would have performed if you had chosen Bitcoin instead.
Try the Calculator