⁉️Why Warren Buffett Avoids Gold and Bitcoin
Buffett applies a simple rule to any investment: the ideal asset should generate cash flow over time.
For example, companies produce profits (dividends), and real estate generates rental income.
But gold and Bitcoin produce nothing — you buy them, and they just sit there. The only way to profit is if someone else buys them later at a higher price. Economists call this the “Greater Fool Theory.”
Buffett applies a simple rule to any investment: the ideal asset should generate cash flow over time.
For example, companies produce profits (dividends), and real estate generates rental income.
But gold and Bitcoin produce nothing — you buy them, and they just sit there. The only way to profit is if someone else buys them later at a higher price. Economists call this the “Greater Fool Theory.”
That’s why Buffett doesn’t consider them true investments, but rather speculative assets.