Legendary investor Bill Miller has shown great love for cryptocurrency as the billionaire and fund manager said bitcoin and other cryptos now make up around 50% of his personal assets.
Miller made his revelation during a video interview with WealthTrack, saying he views bitcoin as “insurance” against financial disasters and government excesses.
He said he invested in bitcoin in 2014 and then started buying it back last spring amid renewed interest from venture capitalists.
“Bitcoin is the only economic entity where supply is not affected by demand,” he said.
The billionaire investor advised individual investors to put at least 1% of their assets in bitcoin.
“I think the average investor should ask themselves what do you have in your portfolio that has that kind of track record – number one; is very, very underpenetrated; can provide a financial catastrophe insurance service that no one else cannot provide; and can go up ten times or fifty times,” Miller said. “The answer is: nothing.”
He explained that “if you put 1% of your portfolio into it for diversification, even if it drops to zero, which I think is highly unlikely, but of course possible, you can still afford to lose 1%.”
Miller is founder and chief investment officer of Miller Value Partners, a company he founded in 1999 while working at Legg Mason. He lost most of his fortune in the late 2000s, but made a comeback thanks to his investment in Amazon. (AMZN) – Get the Amazon.com, Inc. report and bitcoins.
“I thought 50% was a good stopping point for me,” he said, “but if it goes down to $80-85,000, I’ll buy it all the way down.”
He holds the record for beating the S&P 500 index for 15 consecutive years between 1991 and 2005.
