Investors are increasingly moving assets from stocks and bonds to crypto - and Bill Miller is no different. Miller, one of the world's most renowned value investors, has said he put half of his personal assets into Bitcoin (BTC) and various other cryptoassets in order to leverage his crypto investments.
Miller Value Partners' Founder and Chief Investment Officer, originally invested in the top cryptocurrency in 2014, and then started buying it up again last spring, just as venture capital firms began to show interest.
In a recent interview with Consuelo Mack, Miller said:
“I think the average investor should ask himself or herself what do you have in your portfolio that has that kind of track record -- number one; is very, very underpenetrated; can provide a service of insurance against financial catastrophe that no one else can provide; and can go up ten times or fifty times. The answer is: nothing.”
Miller holds the record for 15 consecutive years outperforming the S&P 500 in the years 1991 to 2005 with Legg Mason Capital Management Value Trust Fund. He stated that his crypto investments go against many of the principles of financial discipline. However, he also said that some of the world's wealthiest people - such as Amazon's Jeff Bezos, Meta's Mark Zuckerberg, and Berkshire Hathaway’s Warren Buffet - are all “highly concentrated” in their investment holdings.
Miller credited a speech by Wences Casares, CEO of crypto wallet Xapo, to his decision to invest so heavily in cryptocurrencies at an event where he attended. According to Miller, investors in unstable economies saw bitcoin as a means of protecting their wealth in the face of hyperinflation, bank nationalization, and governments seizing assets. He explained:
“I bought some [in 2014], and bought a little bit more over time, and it became USD 500. Then I stopped buying it. And I didn’t buy it for years until just the spring of . It hit up USD 66,000 high price, and then in four weeks it was in half."
According to Miller, he started purchasing BTC again at USD 30,000, because "there’s a lot more people using it, there’s a lot more money coming in from the venture capital world."