If you have never seen a perfect long-term trend set up for a new set of markets, I give you yesterday’s Union Square Ventures investment in Coinbase.
On one end of the trend…Union Square has a good track record of investing in things that are too early to understand for most, but become mainstream. They invest many millions of dollars in platforms and ideas that have traction, but many hurdles on their way to mainstream.
On the other end of the trend is Warren Buffeet. Warren can be late. He can buy troubled companies or great companies late in their growth cycle like $IBM. At the same time that Fred Wilson is confirming ‘game on’ with the Bitcoin trend and all that Bitcoin means (trust, currency, security, technology), Warren can ignore and hoard railroads and banks. As a recent example, I am sure Warren had never heard of Twitter in 2007, scoffed at in in 2010, and signed up for Twitter last week. For those calling a top on Twitter because of Warren Buffett, prepared to be wrong. The trend is just now maturing.
In yesterday’s WSJ, Warren was quoted on Bitcoin:
Still, the budding currency is far off from going mainstream. Investor Warren Buffett professed Saturday to knowing nothing about Bitcoin when asked about it during Berkshire Hathaway’s annual meeting.
“I’ll put it this way, of our $49 billion we haven’t moved any of it to Bitcoin,” he said.
Fred is taking a lot of risk. That’s his job. But, as a risk taker myself, I like to see this type of setup. Not too early for Fred, but way too early for Warren Buffett.