Warren Buffett has never been shy about his skepticism toward Bitcoin. He’s famously called it “rat poison squared” and dismissed it as a non-productive asset. But at the 2025 Berkshire Hathaway annual meeting, his final as CEO, Buffett issued a series of warnings that have some wondering: Is the Oracle of Omaha starting to see the case for Bitcoin? Probably not. But his message offers a clear framework for investors concerned about preserving purchasing power in an increasingly unstable fiscal environment. And there are several ways, beyond Bitcoin, to position portfolios accordingly.
“Scary” Fiscal Policy
In front of tens of thousands of shareholders in Omaha, Buffett delivered a sobering assessment of U.S. fiscal health. He described current fiscal policy as “scary,” citing the federal government’s roughly 7% deficit, more than double what he views as sustainable. Left unchecked, he warned, this trajectory could become “uncontrollable” as soon as 2027. His concern wasn’t just about numbers on a balance sheet. It was about the future purchasing power of the U.S. dollar.
The Inevitable Devaluation of Fiat?
Buffett acknowledged something crypto enthusiasts (and we at Aptus) have long warned about: the structural tendency of governments to erode the value of their currencies. Not out of malice, but out of political necessity. “The natural course of government,” he said, “is to make the currency worth less,” especially when debt obligations pile up faster than tax receipts.
That’s the crux of the Bitcoin thesis. And it’s also a core part of our argument for rethinking traditional portfolio design in this environment.
A Shift in Tone, If Not in Portfolio
Let’s be clear: Buffett didn’t reverse course and endorse Bitcoin. But his message in 2025 landed differently. With inflation still sticky, debt mounting, and political will lacking, Buffett’s remarks echoed many of the arguments made by Bitcoiners and real asset advocates. Some even dubbed it his “orange pill” moment—Bitcoin slang for waking up to the risks of fiat debasement.
Opportunities Outside of Bitcoin: What We’ve Been Saying
Whether or not you buy into Bitcoin, Buffett’s concerns support a broader rethink of portfolio construction. We’ve been calling attention to the same risks, and proposing practical solutions:
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- More Stocks, Less Bonds, Risk Neutral: In a world of structural inflation and fiscal recklessness, cash and fixed-rate bonds are melting ice cubes. We’ve consistently argued that equity exposure, paired with downside protection through options, is the best way to preserve and grow wealth in real terms.
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- Nominal Bonds Can’t Keep Up: Even before Buffett’s remarks, the math was clear: after inflation and taxes, nominal bonds often fail to deliver real returns. In many cases, they quietly guarantee a loss of purchasing power. That’s not defense, it’s decay.
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- The Opportunity with TIPS: If inflation is persistent and deficits remain high, nominal bonds are a losing game, especially after taxes. TIPS, which adjust with inflation, offer investors protection that’s anchored in real purchasing power.
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- Tax Efficiency Matters More Than Ever: With rising deficits, future tax burdens are unlikely to shrink. That’s why we focus on tax-aware investment solutions because real returns only matter if you get to keep them.
Final Thoughts
Buffett built his legacy on owning quality businesses with durable moats. But his final message as CEO wasn’t about balance sheets or competitive advantage. It was a warning: the biggest threat to long-term wealth may no longer be market volatility, but the steady erosion of the dollar’s purchasing power.
No, he’s not buying Bitcoin. But for someone who once scoffed at it, Buffett’s concerns echo many of the same truths: fiat currency is fragile, fiscal policy is broken, and investors need to rethink how they protect their future.
Disclosures
Past performance is not indicative of future results. This material is not financial or tax advice or an offer to sell any product. The information contained herein should not be considered a recommendation to purchase or sell any particular security. Forward looking statements cannot be guaranteed and all calculations may change due to changes in facts and circumstances.
This commentary offers generalized research, not personalized investment advice. It is for informational purposes only and does not constitute a complete description of our investment services or performance. Nothing in this commentary should be interpreted to state or imply that past results are an indication of future investment returns. All investments involve risk and unless otherwise stated, are not guaranteed. Be sure to consult with an investment & tax professional before implementing any investment strategy. Investing involves risk. Principal loss is possible.
Advisory services are offered through Aptus Capital Advisors, LLC, a Registered Investment Adviser registered with the Securities and Exchange Commission. Registration does not imply a certain level or skill or training. More information about the advisor, its investment strategies and objectives, is included in the firm’s Form ADV Part 2, which can be obtained, at no charge, by calling (251) 517-7198. Aptus Capital Advisors, LLC is headquartered in Fairhope, Alabama. ACA-2505-14.
