Saylor's Billionaire Test: Does Bitcoin Pass the Arnault Standard?
Michael Saylor, executive chairman of Strategy, has outlined his 'Bernard Arnault test' for investing like a billionaire. The test asks whether an asset will be in demand by someone wealthier and more cultured than oneself in ten years.
The test was inspired by Bernard Arnault, the chairman of luxury goods company LVMH Louis Vuitton Moët Hennessy, who is ranked 11th on Forbes' list with a net worth of $142.3 billion. Saylor wants investors to think about what someone like Arnault would want to buy from them in ten years.
Saylor has applied this test to Bitcoin and believes it passes the test. He has invested in Bitcoin through Strategy, which now holds 840,447 BTC at an average cost of $75,385 per coin.
Strategy's position is roughly 2.5% above water, or around $1.6 billion in paper gains. However, Saylor acknowledges that critics remain unmoved and Peter Schiff, the founder of Euro Pacific Capital, has called for investors to sell Bitcoin and Strategy stock as gold topped $4,400 an ounce.