Cryptocurrency News

Binance CEO Talks Investment Strategy and Crypto

According to the CEO of crypto exchange Binance, his investment strategy is very similar to that of the CEO of Berkshire Hathaway, Warren Buffet. However, he went on to say that he wouldn’t convince the Oracle of Omaha to make crypto investments. He said that he would get worried if Buffet decides to use crypto because he may not possess the necessary knowledge and skills needed for keeping his digital assets safe. Changpeng Zhao (CZ), the CEO of Binance, discussed this on Wednesday on Yahoo Finance. He had been full of praise for Buffett’s investing skills after he read a book about him.

The title of the book is ‘Warren Buffet: Inside the Ultimate Money Mind’ and it offers a deep analysis of the essential wisdom of the renowned investor. The chief executive of Binance was questioned about what he would say to the Oracle of Omaha if he were sitting in a room with him and had to give him reasons to invest in crypto. The Binance boss said that he wouldn’t want to convince him at all because he didn’t believe it is necessary for everyone to make crypto investments. He said that his mom didn’t use the internet all that much and she was fine and so was the internet. 

He stated that we live in a free world and no one needs to be convinced to use crypto. He said that it was only for the people who wanted to use crypto. The Binance executive said that he had read the book on Buffett because he likes reading investment books. Zhao said that he had stumbled upon it recently and it had turned out to be good. In fact, he said that the investor had a number of investment theses that could apply to crypto because they are timeless. The simple fact is that Buffett is not interested personally in cryptocurrencies.

Furthermore, the Binance CEO elaborated that he believes they have a similar investment strategy. He explained that the book highlighted that Buffett does not like to diversify his portfolio. Zhao said that Buffett prefers to invest in a small number of stocks as opposed to diversifying across hundreds of them. He prefers those that he knows well and this is something very similar to his own mentality. Zhao said that he only holds BTC and BNB and doesn’t diversify across different crypto assets. He stated that it was because of this non-diversification that Buffett hadn’t joined the crypto space.

Zhao said that money wasn’t a problem for Buffett, but he has reached a stage in life where his teachings, philosophies and learnings can prove to be immensely valuable to the world. He added that the chief executive of Berkshire Hathaway was very successful and this commanded his respect. He noted that getting him into crypto was not necessary at all. Buffett has been very vocal in his criticism for bitcoin and crypto in general. In 2018, he had used the term ‘rat poison squared’ for bitcoin and said that crypto was not an investment, but a game or gambling. 

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