Mexico’s Third Richest Man Says No to Bonds, Yes to Bitcoin
Ricardo Salinas Pliego is the third richest man in Mexico to make headlines for his stance on bitcoin. The billionaire saw Elektra, a supermarket chain, be the first to accept bitcoin payments in the future. He has also been a strong believer in investing in digital assets as opposed to traditional assets. This time, the billionaire has shocked investors after revealing that he now has most of his portfolio in bitcoin.
60% to Bitcoin
During the Bitcoin conference being held in Miami, billionaire Ricardo Salinas made a shocking revelation. He said the majority of his portfolio was in bitcoin and bitcoin stocks, making up 60% of the said portfolio in total. This is significantly higher than the 10% of his total assets that Salinas said were in digital assets last year. This means that Salinas currently has billions of dollars of exposure to the pioneer cryptocurrency.
While the share of the billionaire’s portfolio allocated to bitcoin is large, it’s no surprise that he chose to take the plunge. Salinas has long advised investors to put some of their portfolios in the digital assets. It is often not recommended to store wealth in fiat currencies.
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It’s a no to bonds
Bonds have been a way for the ultra-rich to secure safe returns for the longest time. However, with inflation rising faster than interest rates on these bonds, interest in them has waned over time and Salinas appears to have completely renounced them.
When asked about his portfolio allocation, the billionaire said he did not hold any portion of his portfolio in bitcoin. Instead, he had a liquid portfolio made up of bitcoin and other hard asset stocks. “I have absolutely no tires,” Salinas revealed. “I have a liquid portfolio – I have 60% in Bitcoin and Bitcoin stocks, and then 40% in hard asset stocks like oil and gas and gold miners, and that’s where I am.”
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He went on to inflate bond investments that he believed were a terrible choice. Given that interest rates refused to rise and the ensuing bond sell-off that took place worldwide, the billionaire’s stance on bonds is not a shock.
“Investments in bonds are a terrible investment. I wouldn’t touch a bond with a 10-foot pole,” the billionaire said. “It’s just the worst. I mean, the best thing that could happen to you is get your $100 back. That’s the best that could happen.”
Ricardo Salinas Pliego is rated as the third richest man in Mexico with a net worth of approximately $13 billion. He owns Grupo Elektra, a supermarket chain, a company he inherited from his father, and TV Azteca, a Mexican TV channel.
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