According to Lazy Portfolio ETF data source, Warren Buffett's portfolio has achieved a CAGR of 10.03% with a standard deviation of 13.67% over the past 30 years. By comparison, stock portfolios of US companies deliver more or less similar returns but with a higher standard deviation.
His investment philosophy emphasizes long-term value investing, prudent risk management, and prioritizes companies with solid fundamentals.
Since its trading launch in 2011, Bitcoin has delivered a staggering average annual return of around 104%.
Bitcoin's CAGR is also much higher than its safe-haven rival gold, which has returned an average of 6% annually over the same period. This suggests that although the US stock portfolio has achieved a CAGR comparable to Buffett's portfolio, its higher volatility may make it unsuitable for risk-averse investors. ro.
Gold, with a modest average annual return of 6% over the past decade, offers relative stability and acts as a hedge against economic downturns.
Several US companies, such as MicroStrategy and Tesla, have added Bitcoin to their reserves, followed by the launch of spot Bitcoin ETFs that have further solidified the leading cryptocurrency's position for institutional investors.
As can be seen, Bitcoin remains highly volatile, with its price fluctuating wildly when compared to the steady returns in Buffett's portfolio. In recent years, Bitcoin has had lower volatility than many S&P 500 stocks, including Tesla, Meta and Nvidia.
