Legendary investor Bill Miller has revealed that he has half of his portfolio invested in Bitcoin.
He stated this during an interview with Wealthtrack‘s Consuelo Mack.
Bill Miller and the choice to invest in Bitcoin
In the interview, the famous investor said that he first heard about Bitcoin in 2014 during a conference. On that occasion, he was told that Bitcoin could not be touched by governments due to its decentralized nature. He was told to invest at least 1% of his investments in Bitcoin, and so he did.
Bill Miller also notes that the richest men in the US, among whom he cites Jeff Bezos and Warren Buffett, have investments that are poorly diversified and “very concentrated”.
He admits that Bitcoin is volatile and dangerous, but, he says, he resumed buying it when it had fallen back to $30,000 after peaking at $66,000 with the assurance that each time Bitcoin fell it always returned to its previous levels. In addition, he pointed out that a lot more people, including venture capital, are getting into Bitcoin right now.
At this point, Bill Miller explained:
“Maybe 50% is a good stopping point for it, but if it goes back down 80-85% I’ll buy it all the way down. Well, it did stop right around 50% and slowly started its way back up again, but I bought a fair amount at the $30k dollar range and have been adding to various Bitcoin-related investments since then”.
These investments include a Bitcoin mining farm that runs on renewable energy, and Microstrategy, Michael Saylor’s company known for including Bitcoin in its balance sheets.
Microstrategy currently holds over 122,000 BTC worth $3 billion.
Bill Miller also said he is confident that despite the limited supply, the demand for Bitcoin is set to grow in the coming years and this will inevitably drive the price up.
Who is Bill Miller
Bill Miller is an American investor, fund manager, former CEO of Legg Mason Capital Management, now CEO of his Miller Value Partners. He became famous because with Legg Mason Capital he outperformed the S&P 500 for 15 consecutive years, from 1991 to 2005. He attributed this success to luck.
He is no stranger to investing in Bitcoin or making such statements. Back in December 2017, which was when Bitcoin touched its first all-time high at $20,000, it emerged that his hedge funds were half in Bitcoin.
His first investments had started in 2014. He bought Bitcoin at an average of $350 each. According to Forbes, he had gambled 1% of his investments in Bitcoin as early as 2014.
Given the rise in Bitcoin’s price since 2014, it is obvious that this was the most profitable 1%.
Source: https://en.cryptonomist.ch/2022/01/11/141128/