Crypto Fans Rip Buffett's $209M Opportunity Cost Picking AMZN Over BTC

(CCN) In mid-May, Warren Buffett made big news with a major splash into the Amazon pool, adding the stock to its books for the first time.

Berkshire executed a mammoth $904 million acquisition of the retail giant’s shares. That investment has performed well over the last two months. But not nearly as well as the bitcoin price.

Here’s how much the Oracle of Omaha lost by investing in Amazon instead of bitcoin.

Warren Buffett’s Amazon Stake

On the day Berkshire Hathaway completed its acquisition, Amazon stock traded for $1,871 at market close. Two hours before the market close Thursday, Amazon shares were priced at $1,957, beginning to rally from the day’s earlier losses as the market dipped from $1,980 per share at the opening bell.

That’s not a bad return for Warren Buffett’s investment over two months. Since May 15th, Berkshire’s stake in Amazon grew from a value of $904 million to $945 million. That’s a 4.6% return on investment and a cool $41.55 million profit for Berkshire’s shareholders.

However, at the same time as Buffett decided to invest in Amazon, the price of Bitcoin peaked after what amounted to a two-week long bullish run, pulling back to the low $7,500 range in mid-June.

Then the crypto currency rallied again beyond the $13,000 level, currently settling around $10,500 at a moment when Amazon is testing $1,960.

Buffett, of course, isn't a day trader. He's in investments "forever." Still, he's trapped in this particular comparison. People who say Amazon is already too frothy are unhappy with the way he's capitulated to herd mentality buying a growth stock at a lofty 70X earnings. 

And if he's going to throw away his value-obsessed discipline, he'd might as well go with the most sizzling momentum assets around, right? Saying "yes" to Amazon and "no" to BTC leaves him stuck between definitions of success. It's not a good compromise or a good look.


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