Famed Value Investor Bill Miller is making news again by putting up to 30% of his fund’s assets in Bitcoin. Value Investor seems like the wrong label for a manager holding 30% of his fund’s asset in a speculative “currency.” Jason Zweig reports:
In the letter [to shareholders], Mr. Miller pointed out that a “Murderers’ Row” of revered investors have been declaring that bitcoin is overpriced or a “bubble,” including Berkshire Hathaway Inc.’s Warren Buffett, James Dimon of J.P. Morgan Chase & Co. and Laurence Fink of BlackRock Inc., Bridgewater Associates’ Ray Dalio and Howard Marks of Oaktree Capital Management.
“My view on bitcoin is that it is a technological experiment that may or may not prove to have any long lasting value,” Mr. Miller wrote in his letter. “Bitcoin has a market capitalization greater than 90% of the companies in the S&P 500, but it still might fail. I don’t know and neither does anyone else, no matter how certain they are of their opinion.” As of Friday, Bitcoin had a total value in circulation of approximately $96 billion, according to coinmarketcap.com.
Read more here.
Jeremy Jones, CFA
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