The individual who has outperformed the S&P 500 for the most years is heavily invested in bitcoin.
Bill Miller, the legendary value investor, said in a Wednesday interview that owning bitcoin is like having insurance against financial disaster, reiterating remarks he made last month when he revealed bitcoin was half of his fortune.
Given the digital currency’s price decrease over the last few months, Miller noted that bitcoin no longer accounts for 50% of his portfolio. However, he stated that his bitcoin holdings are still “quite large.”
According to a Markets Insider story, the chairman and chief investment officer of Miller Value Partners remarked, “It’s like an insurance policy.”
“There is no intrinsic value in insurance coverage.” You actually want them to have no intrinsic worth. You don’t want your house to burn down or be involved in a horrific accident, but you pay for insurance every year just in case,” he continued.
Some say that all worth is subjective to human judgement, therefore whether something has intrinsic value or not is a point of contention. Miller’s point, on the other hand, is in line with the global financial system’s volatility.
“Bitcoin provides insurance against financial calamity,” Miller explained, “as we witnessed in Lebanon, Afghanistan, and many of these other nations around the time of the pandemic.”
Last year, Afghanistan experienced severe economic turmoil as a result of the United States’ complete military withdrawal, which resulted in the collapse of the government. In August, residents of Kabul, Afghanistan’s capital, hit a brick wall when they tried to withdraw money from their bank accounts and depart the country after Taliban insurgents took control of the city and demanded the government’s capitulation. In the Central Asian country, Bitcoin swiftly became an instrument for financial liberty.
Miller also remarked in the interview that KPMG Canada’s recent bitcoin allocation was a positive move, since he owns the record for most straight years exceeding the S&P 500 between 1991 and 2005.
“I believe you’ll see a lot more adoption among foundations, endowments, and institutions this year, and that trend will continue,” he said.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.