Bitcoin has significantly outperformed Berkshire Hathaway in 2025, highlighting the missed opportunities for the conglomerate as it ignored BTC as a growth asset.
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Berkshire could have made $850M from Bitcoin with just a 5% allocation.
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Bitcoin has outperformed Berkshire stock and its top holdings in 2025.
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BTC’s year-to-date return stands at 16.85%, compared to Berkshire’s mere 3.55% increase.
Bitcoin has outperformed Berkshire Hathaway in 2025, showcasing the cost of ignoring BTC as a growth asset. Learn more about this trend.
Bitcoin Could Have Softened Berkshire’s $4.60 Billion Equity Loss
The Warren Buffett-led conglomerate took a massive $5 billion impairment hit on its Kraft Heinz stake during the quarter, contributing to $4.60 billion in equity method investment losses for the year’s first half.
Net earnings are down sharply from the same period last year, and the firm’s stock has lagged behind both Bitcoin and the S&P 500 in 2025, especially after Buffett announced that he would step down from the CEO position.
As of Aug. 5, Berkshire shares are up just 3.55% year-to-date. By contrast, the S&P 500 has gained 7.51%, while Bitcoin is up 16.85%.
Berkshire held $100.49 billion in cash and cash equivalents at the end of June, most of it parked in short-term Treasury bills and low-yield instruments.
If just 5% of that capital had been allocated to Bitcoin at the beginning of 2025, it would have delivered over $850 million in unrealized gains by August, based on BTC’s 16.85% year-to-date return.
That hypothetical Bitcoin gain wouldn’t have erased the Kraft Heinz shortfall but would have meaningfully offset the loss.
It also would’ve given Berkshire more flexibility since the firm hasn’t conducted stock buybacks in the first half of the year.
BTC Beats Berkshire’s Top Holdings in 2025
The missed BTC gains put into perspective just how much Berkshire’s conservative approach has cost in relative performance.
For instance, the cryptocurrency has outperformed Berkshire’s top three stock holdings—Apple (AAPL), American Express (AXP), and Coca-Cola (KO)—so far in 2025, as shown below.
The irony is that Buffett has long dismissed Bitcoin as “rat poison squared.” He’s repeatedly said that Bitcoin produces no yield, has no intrinsic value, and does not belong in any investment portfolio.
And yet, Bitcoin has outperformed Berkshire’s top holdings in a year defined by rising ETF inflows, institutional adoption, and a macro backdrop that has increasingly favored hard assets.
Buffett’s successor, Berkshire’s new CEO Greg Abel, has so far offered no public statements supporting Bitcoin or any crypto.
Key Takeaways
- Berkshire could have made $850M from Bitcoin: A mere 5% allocation would have yielded significant unrealized gains.
- Bitcoin outperformed Berkshire’s top holdings: BTC’s 16.85% year-to-date return surpasses major stocks.
- Conservative strategies have costs: Berkshire’s approach has led to missed opportunities in a changing market.
Conclusion
Bitcoin’s performance in 2025 underscores the potential risks of ignoring alternative assets. As traditional investment strategies face challenges, the need for diversification becomes increasingly clear. Berkshire Hathaway’s conservative approach may have cost it significant gains, prompting a reevaluation of its investment philosophy.
