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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