Bill Miller, whose intelligent investment management has been praised throughout his career by the major media (New York Times, Wall Street Journal or Fortune), declares at 72 years a substantial allocation in bitcoins. The first cryptocurrency now represents, directly or indirectly, 50% of the net value of its personal funds. Back on the how and why of a self-proclaimed simple observer of the crypto market who has become, according to him, a “real Bitcoin bull”.
Renowned investor Bill Milner owns 50% of his portfolio in bitcoin
In these uncertain times when bitcoin looks grim and indistinguishable from other globally gloomy asset classes, heart-pumping news is not so common. Also, the last interview given by Bill Miller to the media “Wealthtrack” is likely to cheer up crypto enthusiasts rather battered by the chafouine moods of a market won by the winter frosts.
Indeed, the famous ex-chairman of Legg Mason Capital Management, whose Legg Mason Value Trust is the only mutual fund to have exceeded the return of the S&P 500 index for 15 consecutive years (1991 – 2005), has woven crowns of laurels to Bitcoin during his intervention.
Above all, joining the deed to the word, he declared a bitcoin allocation now representing 50% of the net worth of his personal wallet. A significant proportion that started in 2014 with a first purchase of BTC at $ 200, followed by other purchases when it hit the price of $ 500.
Leaving digital assets behind for several years, Bill Milner says he returned to it last spring, when bitcoin fell to $ 30,000 after peaking at $ 66,000. A return motivated, according to him, by the influx of new adopters and the growth of financial flows from the world of venture capital.
The reasons for his faith in Bitcoin
Admitting that its investments in cryptocurrencies may go against certain principles attached to financial discipline, it nevertheless recommends that individual investors take a close interest in it and devote at least 1% of their budget to it.
” I think the mid-sized investor should ask themselves what they have in their portfolio that might have the same kind of history. First, BTC is very, very little penetrated. Then it can provide a financial catastrophe insurance service that no other asset can provide. Finally, it can go up ten or fifty times. What other asset has the same qualities? The answer is nothing.”
He puts them however warns against asset volatility, saying it is “very dangerous” for short-term investors. In contrast, for long-term holders, the asset is for him the right investment tool, always succeeding through thick and thin to overcome its price drops.
Taking up the antiphon of “digital gold”, Miller judges bitcoin to be better than precious metal. The reason is that governments cannot ban it as in the famous episode when the Roosevelt administration in 1933 inquired about banning the holding of coins, bars and gold certificates in the territory. metropolitan area of the United States.
Referring to Warren Buffet, the ancient financial mogul who, a few years ago, had somewhat cryptically compared bitcoin to “rat poison squared” with no intrinsic value, Miller considers that as Him, humanity has not yet realized what the merits of bitcoin will be in the future. Here too, taking up a widely used comparison, he recalls that hardly anyone had foreseen how and to what extent the Internet would affect society.
Bill Miller exposes himself to Bitcoin personally and professionally
The revelation of the makeup of his personal wallet may seem somewhat extravagant to some, especially since the proportion of BTC he holds could increase further. But he takes care to specify that the allocations of most billionaire investors are “very concentrated”.
” I think 50% is a good stopping point for me, but if [BTC] goes up to $ 80 / 85,000, I will buy it all the way. “
An exposure to the first cryptocurrency which is also indirect. Indeed, Miller said part of his holdings were based on investments in bitcoin miner Stronghold Digital and MicroStrategy, Michael Saylor’s company has become a sort of Bitcoin ETF in view of the direction taken over the past year.
Remember that his faith in bitcoin also extends to the professional field. Its flagship fund, the Miller Opportunity Trust, has a substantial stake in the Grayscale Bitcoin Investment Trust with 1.5 million GBTC shares.
Amazon stocks, in which he was one of the first investors, constitute the majority of the other half of his portfolio.