Buffett: Dead Wrong on Gold and Now Cryptocurrencies
Contributed Opinion

Source:

Lior Gantz Lior Gantz, founder of Wealth Research Group, believes Warren Buffett has left untold profits on the table by not investing in gold and cryptocurrencies.

I have so much respect for Warren Buffett. In fact, it's well beyond respect—it is a complete admiration for his dedication to sticking with his philosophy and making ridiculous amounts of money for his shareholders.

I have been studying Buffett's approach and success since the age of 16, when a neighbor of mine who was a stock broker then and my babysitter prior to that when he was a teen himself, told me to start reading up on the Oracle of Omaha. Even I can't shake the feeling that Buffett is losing his magic touch.

Berkshire Hathaway vs. Gold

During the length of the bull market for commodities, from 2000–2012, Buffett's persistence to sticking with his mandate of avoiding natural resource businesses cost him big-time.

Years prior, even his close and tight relationship with mega-successful entrepreneur Bill Gates, which started in 1991, hadn't convinced him to own even a single share of Microsoft.

That had to be a mistake that cost Warren tens of billions in lost profits. Warren's strategy revolves around Wealth Stocks, but Wealth Research Group has backtested Berkshire Hathaway's performance, and the fact is that Berkshire's massive cash hoard, which is in the tens of billions of dollars, must be partly converted into gold and silver because the USD is practically entering a bear market.

Bloomberg Dollar Index's 200-week average

Buffett is an expert at identifying the value of a brand name, like Coca Cola, American Express or Procter & Gamble, and he loves these companies because they don't have to constantly spend marketing dollars to attract customers. But what about gold?

That's the most universally accepted form of money to ever exist. Give a man a gold bar and he'll instantly recognize the value of it. Can you say the same thing about nickel, lead, or other metals?

Gold reigns supreme as the emperor of elements, and that's exactly why mining it brings with it the opportunity for ridiculous gains.

As it stands today, the gold-to-silver ratio is again approaching 80:1, and whenever it reaches that extreme, we've seen the ratio reverse course and mining shares explode to the upside.

Gold-Silver Ratio

But Buffett's ignorance of the dangers of fiat currencies goes beyond his refusal to convert some fiat into gold, which would have pocketed him serious gains with zero hassle. He has now taken a stand against cryptocurrencies.

Here's the problem with that: cryptocurrencies are the future of transactions.

Wealth Research Group has been covering the most important developments and our highest-conviction opportunities.

They represent an important allocation of my personal portfolio model, especially with regards to my ultimate safe havens list.

Number of Patent Applications

Even Buffett has to admit that the amount of patents being applied for within the blockchain industry is creating a competitive advantage like no other for this industry, and it goes beyond Bitcoin alone.

I don't plan to miss the monster profits that lie ahead, and the Wealth Research Group newsletter will be publishing specific ideas on how to position for maximum gains.

The August 1 Bitcoin fork will only validate the industry's importance, but it's only in its infancy stage.

The runway is clear for businesses to hyper-grow and prosper.

Lior Gantz, the founder of Wealth Research Group, has built and runs numerous successful businesses and has traveled to over 30 countries in the past decade in pursuit of thrills and opportunities, gaining valuable knowledge and experience. He is an advocate of meticulous risk management, balanced asset allocation and proper position sizing. As a deep-value investor, Gantz loves researching businesses that are off the radar and completely unknown to most financial publications.

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Disclosures:
1) Statements and opinions expressed are the opinions of Lior Gantz and not of Streetwise Reports or its officers. Lior Gantz is wholly responsible for the validity of the statements. Streetwise Reports was not involved in the content preparation. Lior Gantz was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
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Charts provided by Wealth Research Group

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