Star investor Warren Buffett is regarded as a luminary in his field, his nose in worthwhile investments is unparalleled. But now there is a serious challenger.
Chinese Sam Ling, entrepreneur and noted Buffett fan, is betting his crypto-currency index will perform better than Buffett’s portfolio.
The student wants to outdo the teacher
It’s been three years since Sam Ling, along with a partner, won the annual charity auction, which will be auctioning off lunch with investor legend Warren Buffett. Ling was worth 2.35 million dollars in lunch with the man he calls his “big idol”. Speaking to CNBC, the Chinese, now CEO of the Supwin Financial Services Group in Guangzhou, China, said: “I have been looking at it for many years and studying its investment strategies, I am a loyal fan”.
Apparently Buffett had one or two tips for Ling at lunch, because he now confidently announces that he can beat the old master in a ten-year bet – with an investment that the 87-year-old star investor is anything but positive about: cryptocurrencies.
Ling shares Buffett’s preference for index funds
It is no surprise that Warren Buffett advises investors on index funds. While he railroads against fund managers who he believes are the only ones making money on such products, he advises investors again and again to lower-cost index funds. And Buffett can back this up with his own success: in a 10-year bet between him and fund manager Ted Seides, CEO of Protégé Partners, Buffett’s favorite index fund on the S & P 500 beat ‘Vanguard 500 Index Fund Admiral Shares’ lengths. 7.1 percent a year, Buffett index funds dropped annually – the fund was significantly lower with an average gain of 2.2 percent.
Now there is a new challenger who also offers Buffett a 10-year bet: Sam Ling. Unlike Ted Seides, the Chinese buffets preference for index funds, but wants to transfer them to the crypto currency market. “Cryptocurrencies like the Bitcoinare too volatile, that’s why we’re launching crypto-currency indices, “said the 31-year-old to CNBC, and quite successfully, in the past six months, which are quite challenging for the cryptocommunity, his index has a lower during corrections Decline as the Bitcoin recorded, “said Ling.
During the high spirits have exceeded the performance of Bitcoin but by 50 to 80 percent. Currently, Ling offers several index products in digital currencies: The company’s “BB Index” family consists of 26 crypto currency indices grouped by market capitalization, category and strategy. In addition to the Blockchain Top 7 Index, his firm also has an index that includes the industry’s 50 mid caps.
“Better than his portfolio”
Ling deliberately differentiates itself from short-term investors who use cryptocurrencies to speculate on quick profits. The idea “Hey, this cryptocurrency is going to rise ten percent tomorrow” is a very short-term view, Ling explains in the CNBC interview. Instead, one has the period of one to five years in the target: “What will be the application of this cryptocurrency and its underlying block chain then?” Was one of the questions that you ask.
So convinced of the success of its Crypto Indices, Ling offers a bet to Warren Buffett, a full-fledged critic of the digital currency market: “Warren Buffett has just won a 10-year bet that an index fund would outperform a hedge fund product at that time “Ling said,” and I want to bet with him that my crypto-currency index outperforms its portfolio over the same period. ”
Buffett’s advice always in view
Incidentally, it is not by chance that Ling and its Supwin Financial Services Group specialize in cryptocurrencies. During his lunch with Buffett, he was particularly struck by a star investor’s advice and left a deep impression: “Focus on what you’re doing and you’re already successful,” the 87-year-old is said to Ling three years ago to have. “I followed his advice,” says the entrepreneur today.
It does not matter to the Chinese that Buffett bypasses cryptocurrencies himself. “Bitcoin is a mirage, stay away from it,” the oracle of Omaha had recently explained. It is therefore a highly speculative matter in which one can lose all his money. “Bitcoin is a real bubble,” says Buffett.
But Ling believes in the market, “We can understand why he does not touch cryptocurrencies,” the businessman said of Buffett’s negative attitude. “As long as we understand and focus on what excites us, we follow his philosophy,” Ling said.
There is still no answer to the offer of a new 10-year bet on the part of the star investor.