There are three big reasons why I prefer to invest in this Buffett pick any day of the week rather than any crypto.
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1. The S&P 500 has a long history
Predict the S&P 500 future performance is easy because there are decades of data to continue. In fact, since 1957, the financial index has produced an average annual return of 10% with reinvested dividends.
Although this does not mean that the S&P 500 produced these returns every year, a look at the full history of the index shows that if you were to invest in it at any time and leave your money alone for at least 20 years, you would have turned a profit no matter what. Too bad you scheduled your purchase. With such a long and successful track record, I can be fairly confident that I will be able to achieve similar returns on my own investment if I don't.
Cryptocurrency, on the other hand, has been around for a much shorter time. Most people consider Bitcoin to be the first virtual currency, and it was founded in 2009. So we are talking about a little over a decade of performance history. Since I am a long-term investor and prefer to follow Buffett's advice and avoid investing in something that I would not be happy to hold for at least a decade, an investment that has not been tested makes me nervous.
