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Billionaire Investor Warren Buffet Criticises Prefers Stocks Over Bitcoin

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| May 8 , 2018 , 17:22 IST

Renowned billionaire Warren Buffet on Monday said buyers of Bitcoin thrive on the hope they’ll find other people who will pay more for it and called cryptocurrency as ‘rat poison squared’.

Likening bitcoin demand to the tulip bulb mania in 17th century Holland, Buffett, the Chairman and Chief Executive of Berkshire Hathaway Inc, said the mystique behind the cryptocurrency has caused its price to surge.

“If you don’t understand it, you get much more excited. People like to speculate, they like to gamble.” Buffett said on CNBC television.

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He said investors now are much better off owning U.S. stocks, whose prices are elevated but not in a “bubble,” and it would take a “nanosecond” for him to choose stocks over 10- or 30-year U.S. government bonds now yielding around 3 percent.

Charlie Munger, Buffett’s longtime business partner and a Berkshire vice chairman, is also no bitcoin fan, describing it as “worthless artificial gold.” He likened it to Oscar Wilde’s definition of fox hunting, calling it “the pursuit of the uneatable by the unspeakable.”

Buffet who is 87 years of age and his friend Munger who is 94 also attended Berkshire’s annual shareholder meeting in Omaha, Nebraska, which was expected to have drawn more than 40,000 people.

The meeting was of great significance as it was the first meeting when the company elevated the status of Ajit Jain and Greg Abel to vice chairman, making them the top two candidates to replace Buffet as chief executive.