Sam Ling says he is following Buffets advice to ‘focus on what he is doing and be successful’. He is launching 26 cryptocurrency indexes but there will be domestic and international competition after many other companies launched their index funds.
Chinese entrepreneur Sam Ling, who together with his partner spent $2.35 million bidding on a private lunch with Warren Buffett to get investment advice, is launching “BB Index” — a family of 26 cryptocurrency indexes.
He says he learned to appreciate index funds from Buffet. He now wants to apply the outlook to digital currencies. What’s more? He says that his cryptocurrency index will outperform Buffett’s portfolio over the next 10 years.
The 26 indexes are grouped by market capitalization, category, and strategy. An example is a “Blockchain Top 7 Index” that focuses on top cryptocurrencies. The BB indexes will update every three minutes on the website.
The indexes will help people to manage risks: people will be able to determine the desired expected return they pursue. Chief scientist of BB Index and a former assistant professor of finance at Singapore Management University, Jerry Cao. He told CNBC that the indexes will not focus on a short-term view but “about one year or five years”. However in terms of what will be the application of those cryptocurrencies and their blockchains.
With almost certainty
Surprisingly, his love for cryptocurrencies is not what Buffet, chairman, and CEO of Berkshire Hathaway, likes. He said in January this year that cryptocurrencies will have a bad ending and he predicted that “with almost certainty”. Ling told CNBC that one statement he remembers from Buffet was “focus on what you are doing and you are already successful”. Ling disagrees with Buffet’s advice on the idea that cryptocurrencies will have a bad ending.
“Warren Buffett just won a 10-year bet that an index fund would outperform a collection of hedge funds over that time”, said Ling. “And I want to make a bet with him that my cryptocurrency index will outperform his portfolio over the same period”.
He says he will still be following Buffet’s philosophy in focusing on cryptocurrencies.
His index fund will soon be available on MatrixOne, a crypto trading platform owned by his company Supwin. It will also launch on international exchanges soon. It will launch on Abu Dhabi Global Market in the second quarter of 2018, Huobi and Bitwin Korea crypto exchange. The index fund received $50 million and investment commitments of institutional and an additional capital inflow of $200 million from individual investors after launch.
Other competitors of Ling’s indexes will be Coinbase which launched own weighted index fund for U.S. investors, U.S.-based Cryptos Fund which this month launched an entity to track its CCi30 index of the top 30 cryptocurrencies, and Bitwise Asset Management with its HOLD 10, Private Index Fund. Others are Upbit Crypto Index.
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Image Source: Warren Buffett