Bitcoin Performance Outperforms Warren Buffett Investment

Illustration. (Photo: Unsplash)

JAKARTA - Since trading in 2011, Bitcoin has recorded an impressive average annual return of 104 percent, far beyond the return from Warren Buffett's portfolio and the United States stock market.

When compared to the combined annual growth rate or the Compounded Annual Growth Rate (CAGR), Bitcoin performance is 104 percent, Warren Buffett portfolio -- which includes key stocks such as Apple, Bank of America, American Express, Coca-Cola, and Chevron Corp -- displays significant differences in risk-return profiles.

Over the past 30 years, Buffett's portfolio recorded a CAGR of 10.03 percent with a standard deviation of 13.67 percent, showing impressive results with lower risk compared to US company stock portfolios.

Warren Buffett's portfolio is known for its long-term investment approach focused on strong fundamentals and careful risk management. Despite its relatively stable and less volatile returns, the results remain impressive and comparable to other US stock portfolios.

Oscar Darmawan, CEO of INDODAX, stated that Bitcoin's outstanding performance in the past decade has shown the huge potential of this digital asset as an alternative investment.

"Although the volatility is high, significant return from Bitcoin cannot be ignored. This underscores the importance of portfolio diversification for investors, especially in the digital era like now," Oscar explained.

Warren Buffett's portfolio remains a long-term conservative strategy with a consistent return and manageable risk. On the other hand, Bitcoin has provided a much higher return despite its significant volatility. The selection between the two depends on the risk profile and investment goals of each investor

"With an interesting comparison between Bitcoin's performance and Warren Buffett's investment strategy, investors are given the opportunity to consider various risk factors and potential returns in investment decision making. While Warren Buffett's portfolio offers consistent stability and returns, Bitcoin offers tremendous growth potential despite significant volatility," Oscar explained.

INDODAX as a trusted crypto exchange platform offers easy and secure buying and selling services for investors interested in leveraging the investment potential offered by crypto assets, especially Bitcoin.

Currently, Bitcoin has attracted global attention as a promising investment alternative. INDODAX users can also take advantage of the Earn (Staking) feature, as a way to get profits from crypto.

Earn features allow users to get stake rewards from assets that are staked or locked by the Verified Member. In addition, INDODAX also provides free learning platforms on websites, YouTube and social media to help users learn about crypto from the basis to being proficient.