Heinel Missed Bitcoin at $500 But Saw Gold's $3,000 Surge Coming Years Earlier

Lori Heinel, Global Chief Investment Officer at State Street, has shared two stories that highlight the challenges of making timely investment calls. The first involves her early pitch for gold to clients, nearly seven years before it broke through $3,000 and $4,000 an ounce.

Heinel's thesis on gold rested on the failure of fixed income to play its traditional role in a 60/40 portfolio, as well as concerns about U.S. debt debasement. She acknowledged that clients didn't take action until after the price had moved. State Street still holds a small percentage of gold across its strategic allocation portfolios.

In contrast, Heinel regretted not investing $10,000 in Bitcoin at around $500 or $600 in 2012, an opportunity that would have returned roughly $10 million today. She dismissed it as a viable investment option at the time, calling it 'crazy' to manufacture money.

The full conversation between Heinel and Barry Ritholtz on his Masters in Business podcast offers insights into how institutional investors think about diversifiers when the traditional playbook breaks.