Bitcoin vs. Buffett: BTC holders’ 104% CAGR dwarfs ‘steady growth’ portfolio
Since its trading debut in 2011, Bitcoin has delivered an impressive average annual return of approximately 104%, surpassing the returns of Warren Buffett’s portfolio and U.S. stock markets.
Comparing Bitcoin’s (BTC) compound annual growth rate (CAGR) with the returns achieved by Warren Buffett’s portfolio — with its top holdings being Apple, Bank of America, American Express, Coca-Cola and Chevron Corp — shows starkly different risk-reward profiles and performance over varying timeframes.
For instance, according to the data resource Lazy Portfolio ETF, Warren Buffett’s portfolio has obtained a 10.03% CAGR with a 13.67% standard deviation in the last 30 years. In comparison, United States company stock portfolios have more or less offered similar returns but with a higher standard deviation.
In other words, the Oracle of Omaha’s portfolio has returned impressive results despite being less volatile or risky than U.S. stock portfolios. His investment philosophy emphasizes long-term value investing, prudent risk management and a preference for fundamentally strong companies.
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Author: Yashu Gola
