Just because Oracle of Omaha does not go into bitcoin does not mean he's a bad investor. Perhaps his critics should take a page from his book and do some research.
Let's say the obvious: Warren Buffett is not a stupid man.
After all, he did not earn the moniker "Oracle of Omaha" for nothing. But the 87-year-old was raked over the bullet on Twitter this week when he said the bitcoin "definitely ends badly."
Look, Buffett has a very good reason. He does not go into bitcoin because he does not know enough about it. It is part of his investment strategy - the "competence circle" as a source I spoke to say so.
Warren Buffett Not the Dumbest Person on Wall Street
This isn't the first time Buffett has faced such biting criticism. Buffett faced enormous backlash in the 1990s for his decision to stay away from internet stocks. Even then -- nearly 20 years ago -- he was criticized as old and outdated. But then the dotcom bubble popped, and Buffett was among those left standing tallest.
At the crux of it all is Buffett's investing philosophy: You don't have to swing at every pitch.
The key is to watch pitch after pitch go by. Wait for the right one for you - which might not be the best one for the next ball player on the batting order. Buffett is smart to ignore the calls to swing. His inaction when it comes to bitcoin is, after all, the smartest action to take.
Read more: thestreet.com
