During an interview with The Korea Economic Daily, legendary investor Howard Marks spoke about many different topics including alternative assets and investments like Bitcoin.
He spoke about how investors were “deemphasising bonds and stocks” because the returns were gone. This led them into “alternative assets”.
Marks mentioned that most Americans have their 401K, but that these funds were mostly invested into traditional markets rather than alternative vehicles. He said the US government will “find a way” to let 401Ks get exposure to more alternative assets.
He then suggested that people who want to get exposure to more assets should buy stocks of companies that are currently investing into them.
About Bitcoin, he said he had dismissed the asset back in 2017 as he thought it had no value. But he cited that diamonds, paintings or gold do not have intrinsic value either but are still valued greatly.
Marks revealed he had been studying Bitcoin and said:
“the supply of Bitcoin is controlled by the technology to be limited to 21.5 million coins, and there are already 19 million coins out there, so it can’t expand much more – unlike fiat currencies which can keep expanding to infinity, and the demand is rising as more investors are becoming comfortable with it and getting into the market.”
He went on to say how good it was to be able to buy and sell Bitcoin instantly 24 hours everyday, compared to banks that had closing times that stopped wire transfers.
Confidentiality was another plus that Marks mentioned. He said nobody would see your holdings, least of all the government.
“Nobody can take it from you – it’s better than an emerging market currency”
Marks concluded the interview by saying his first opinion on Bitcoin was a “reaction without knowledge”, and he admitted it wasn’t good to talk about things you don’t know.