The Essence of Investment and the Difference from Speculation: Buffett's Consistent Philosophy

What emerges from Warren Buffett's latest statement is not merely a critique of cryptocurrencies but a deeper issue related to investment philosophy. The CEO of Berkshire Hathaway has clarified his traditional stance on cryptocurrencies in his letter to shareholders, backed by over 60 years of investment experience.

## Contradiction Between Speculative Assets and Intrinsic Value

Buffett points out the fundamental problem that Bitcoin lacks an inherent cash flow generation mechanism. The expression that no one would buy all Bitcoin in the world at $25 emphasizes the extreme nature of its valuation. This perspective is based on a long-standing shared understanding with the late Charlie Munger and indicates a consistent negative stance toward the entire crypto asset market.

## Separation of Real Profits and Speculative Trading

Interestingly, Buffett has an indirect connection to the cryptocurrency market through his investment in Brazil's Nu Holdings. However, what he emphasizes is that true earnings come not from speculative trading but from profits generated by the company's core activities. This stance maintains complete consistency with traditional value investing philosophy.

## Summary of Over Half a Century of Investment Philosophy

The letter signaling Buffett's departure from Berkshire Hathaway's leadership is not merely an opposition to cryptocurrencies but can be seen as the final confirmation of decades-long investment philosophy. The message conveyed is that the intrinsic value of a company is the true investment target, and tilting toward assets lacking fundamental cash flow generation capabilities is the most distant action from this core principle.