A closer look at Buffett’s investment strategy reveals that Bitcoin and Buffett were never posed to be a love affair. Buffett’s investment strategy circulates around the concept of intrinsic value.

Buffett defines intrinsic value as follows:

Intrinsic value can be defined simply: It is the discounted value of the cash that can be taken out of a business during its remaining life.

To give you an example: Buffett bought about $ 1 billion in Coca Cola stock in 1988. Coca Cola has lots of intrinsic value: People all around the world consume Coca Cola, thereby creating a steady stream of profits for the company. These profits make Coca Cola a valuable company.

Now, what Buffett looks for are companies whose market cap is significantly lower than their intrinsic value. In other words, Buffett looks for companies that are significantly undervalued, just like Coca Cola in 1988.