Due to a technical glitch at the New York Stock Exchange (NYSE) on June 3, Berkshire Hathaway’s stock experienced a dramatic 99% drop. Following the NYSE’s suspension of stock trading and the repair of the glitch, Berkshire’s stock price returned to normal levels.
However, while Berkshire’s relative 99% drop against the US dollar was fake, the company’s price relative to Bitcoin did drop by 99%, which is real. Historical data shows that Berkshire’s stock price has dropped nearly 99% relative to Bitcoin since 2015, from around 1 share being worth 1000 BTC to 9.15 BTC.
Interestingly, this phenomenon contrasts sharply with Berkshire owner Buffett’s critical attitude towards Bitcoin, as he has publicly referred to it as “rat poison.”
Furthermore, according to simulations from the Satoshi Nakamoto Investment Portfolio, allocating just 1% of Berkshire’s existing investment portfolio to Bitcoin, which includes major stock holdings like Apple, Bank of America, and American Express, could increase returns from 214% to 240% within a five-year adjustment period.
Similarly, allocating 5% to 10% of the portfolio to Bitcoin could potentially bring Buffett astonishing returns of 328% to 410% during the same period.