Warren Buffett's Warning - The Coming Economic Bubble Burst

Buffett is the Chairman and CEO of Berkshire Hathaway, a multinational conglomerate holding company. Under his guidance, Berkshire Hathaway has grown into a powerhouse, with diverse investments across various industries, including insurance, energy, manufacturing, and more. 

What sets Buffett apart is not just his wealth but also his ability to consistently generate impressive returns on his investments. He has a long history of making accurate predictions and insightful market observations. Buffett's investment philosophy revolves around identifying undervalued companies with strong fundamentals and holding them for the long term, which has earned him immense credibility among investors worldwide. 

Over the years, Buffett has shared his wisdom through annual letters to shareholders and public appearances, where he imparts invaluable insights into the world of finance and investing. His straightforward and down-to-earth communication style, coupled with his exceptional financial acumen, has made him a revered figure in the investment community.

Is the cryptocurrency trading boom creating a new generation of addicts?

With endorsements from celebrities and ads on TikTok, cryptocurrency has gone mainstream. But not everyone gets rich. The Guardian's Rob Davies reports on how crypto apps encourage addictive, high-risk trading habits.

Read or listen to his article HERE.

On the Brink of Disaster or Start of a Golden Age?

From Bitcoin to DeFi (in 12 Short Years)...

Even if you’ve been living under a rock, you’re probably familiar with Bitcoin. Now, just as crypto disrupted the concept of value, decentralized finance is poised to disrupt finance itself. The populist movement promises huge returns for daring investors. But with DeFi’s promise of inclusion comes risk and uncertainty.

Is there something in this or are people that gullible or just plain stupid?

So the question is - is this the start of a new Golden Age or are we on the edge of Disaster? You be the judge.

Warren Buffett on Bitcoin: Has His Opinion Changed?

Warren Buffett and Charlie Munger share their thoughts on Bitcoin. Buffett is the CEO of Berkshire Hathaway and is widely considered the greatest investor of all time. His style of investing (first taught by Ben Graham and later adapted through conversations with Charlie Munger) has been studied by many stock investors throughout the world.

Regulators issue warning to cryptocurrency investors after Bitcoin reaches new all-time high

Regulators have issued fresh warnings on investing in cryptocurrencies after Bitcoin skyrocketed to a new all-time high last week.

The UK’s Financial Conduct Authority (FCA) has cautioned consumers about the high risks involved in investing in cryptocurrencies.

“Investing in cryptoassets, or investments and lending linked to them, generally involves taking very high risks with investors’ money,” the City watchdog said in a statement. “If consumers invest in these types of product, they should be prepared to lose all their money.”

The warning closely follows the regulator’s ban on selling crypto-derivates to consumers which came into effect January 6.

You can read the full article on Bobsguide HERE

Death of the unicorn - Technology startups are headed for a fall

The unicorn reality check was already underway before America declared a national state of emergency over Covid-19 on March 13th. Venture capitalists reckoned that a third of American unicorns would thrive, a third would disappoint and a third would be taken over or die.

Read more HERE

The Ugly Unethical Underside of Silicon Valley

As the list of startup scandals grows, it’s time to ask whether entrepreneurs are taking “fake it till you make it” too far.

Recklessness with the financial truth is often a sign of an economic bubble about to deflate—see the dot-bombs and Enron in late 2000 and the banks amid the 2007 subprime mortgage crisis. Scandals don’t cause recessions, but they can help trigger one. As White warned her Stanford audience: “Who loses when the truth behind inflated valuations is revealed? I think we all do.”

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Bitcoin’s Plunge Bites ‘Miners’

From Wall Street Journal –

“As Value Falls, Some Pull Plug on Computers Supporting System.

A rapid collapse in the value of bitcoin is squeezing some owners of the computers that support the digital currency and raising concerns about its viability.

Bitcoin’s value fell 21% to $179.37 late Wednesday, according to news service Coindesk.

The virtual currency, which trades mostly in unregulated overseas markets, has fallen 44% since the start of the year and 85% from the record high of $1,165 it hit in early December 2013. In total, almost $11.3 billion in value has been lost since that peak.

“The people who most believed in the long-term value of bitcoin holdings are the people who got hurt the most,” said Chase Sechrist, a 22-year software developer based in Austin, Texas, who sunk $30,000, or “most of his savings,” into the digital currency, starting “at the top of the summer 2014 hype cycle.” Having lost virtually all of it, Mr. Sechrist says he’ll “be out of bitcoin for quite a while,” at least until it is better regulated, though he still strongly believes in the future benefits of its core payments technology.

The price decline is causing turmoil for bitcoin “miners”—the independent computer owners who confirm and process transactions in the currency. Miners are compensated with freshly issued bitcoins, which in turn are added to the total supply. As the price of bitcoin falls against the dollar and other traditional currencies, the miners’ profits get squeezed.”

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Bitcoin Bears Say Told You So

From Bloomberg

“If you think oil had a rough 2014, consider bitcoin. The digital currency has plunged 54 percent since the beginning of the year. By contrast, Brent crude has fallen 44 percent; the ruble is off some 46 percent against the dollar.

Bitcoin’s collapse comes as governments around the world consider regulating or prohibiting the virtual currency to prevent criminals from using it to trade contraband. Meanwhile, bitcoin is facing competition from a slew of rivals striving to be more palatable to regulators.

The dramatic reversal -- bitcoin reached more than $1,100 in 2013 and is now trading at about $350 -- is prompting told-you-sos from skeptics who long said the currency’s promise was overhyped.

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Bitcoin is the worst investment of 2014

From Quartz

“There was plenty of ugliness to be found in the markets this year. Ukranian and Venezuelan sovereign debt. High-yield, energy-related corporate bonds. Argentine pesos. Russian rubles. Greek stocks.

But none of these investments has been as atrociously awful as bitcoin, the heavily hyped crypto-currency that stormed onto the financial scene in the last few years, threatening to disrupt the cornerstone of global finance that is fiat currency.

It hasn’t worked out. Year-to-date bitcoin is down roughly 52% at last glance.”

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