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While billionaire hedge fund manager Warren Buffett has long touted investing in the S&amp;P 500, recent data shows that since 2020, the index has underperformed Bitcoin by around 88%.&nbsp;
In an Oct. 5 X <a href="https://x.com/philrosenn/status/1974913797753372701" rel="noopener noreferrer nofollow" target="_blank">post</a> by Phil Rosen, the co-founder of stock market data newsletter Opening Bell Daily, noticed that while the S&amp;P 500 has surged 106% in USD value since 2020, it has “collapsed” significantly in BTC denomination, prompting cheers from Bitcoin pundits.&nbsp;
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 <img alt="Warren Buffett loves the S&amp;P 500, but it’s down 88% on Bitcoin" src="https://s3.cointelegraph.com/uploads/2025-10/0199b7ea-8a00-75b4-9e7e-f39c0b3f0f35" title="">
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 The S&amp;P 500 has had an 88% drop in nominal BTC value since 2020. Source: <a href="https://x.com/philrosenn/status/1974913797753372701" rel="noopener noreferrer nofollow" target="_blank">Phil Rosen</a>
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The Standard and Poor’s 500, or S&amp;P 500, is a stock market index tracking the performance of 500 leading companies listed on stock exchanges in the United States.&nbsp;
Since 1957, the index has delivered an annual inflation-adjusted return of around 6.68%, which is usually higher than the average US inflation rate.&nbsp;
It may be why famous US entrepreneur Warren Buffett has <a href="https://www.fool.com/investing/2025/09/14/billionaire-warren-buffett-has-always-recommended/" rel="noopener noreferrer nofollow" target="_blank">frequently</a> touted the S&amp;P 500 index as the best option for the average investor, and reportedly supports a 90/10 investment strategy — with 90% of a portfolio in the S&amp;P 500, and 10% in short-term US Treasury bonds.&nbsp;
<h2 id="strong-sp-500-breaks-records-but-so-does-bitcoin-strong">S&amp;P 500 breaks records, but so does Bitcoin</h2>
The S&amp;P 500 has continued to break new records in 2025 and is currently at $6,715.79, having risen 14.43% since the start of the year.&nbsp;
Bitcoin, on the other hand, is up 32% on the year after hitting $125,000 for the <a href="https://cointelegraph.com/news/bitcoin-125k-rise-us-gov-t-shutdown-macro-factors-analysts" rel="noopener noreferrer nofollow">first time ever</a> on Saturday.&nbsp;
Put another way, according to <a rel="noopener noreferrer nofollow" target="_blank">OfficialData.Org</a>, the return from investing $100 in the S&amp;P 500 from the beginning of 2020 would turn into around $209.85 by July 2025. The same $100 investment in Bitcoin would be worth $1,473.87.
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 <img alt="Warren Buffett loves the S&amp;P 500, but it’s down 88% on Bitcoin" src="https://s3.cointelegraph.com/uploads/2025-10/0199b7e9-474d-733b-9e2f-fd61524b76e2" title="">
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 Increase on a $100 S&amp;P 500 investment since 2020. Source: <a rel="noopener noreferrer nofollow" target="http://officialdata.org">OfficialData.Org</a>
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Related: <a href="https://cointelegraph.com/news/bitcoin-corrects-from-125k-all-time-high-where-will-btc-price-bottom" rel="noopener noreferrer nofollow">Bitcoin corrects from $125K all-time high: Where will BTC price bottom?</a>
<h2 id="strong-differences-between-bitcoin-and-sp-500-strong">Differences between Bitcoin and S&amp;P 500</h2>
However, comparing the two investments isn’t exactly fair.&nbsp;
The S&amp;P 500 is a comprehensive benchmark for the US stock market, representing the performance of the 500 largest publicly traded companies in the country, an index that is constantly updating, and is seen as a lower risk and reward investment. 
Bitcoin, on the other hand, is a singular digital asset with a completely different set of narratives — centered around <a href="https://cointelegraph.com/explained/can-bitcoins-hard-cap-of-21-million-be-changed" rel="noopener noreferrer nofollow">scarcity</a>, decentralization and deflation — that has exploded in adoption as investors look for new ways to increase or retain value.&nbsp;
Bitcoin is also relatively new, sees more day-to-day volatility and has a significantly smaller market cap than the S&amp;P 500, at $2.47 trillion compared to a whopping $56.7 trillion.
Magazine: <a href="https://cointelegraph.com/magazine/bitcoin-price-prediction-altcoin-season-doubts-bitget-hodlers-digest/" rel="noopener noreferrer nofollow">Bitcoin may move ‘very quick’ to $150K, altseason doubts: Hodler’s Digest, Sept. 28 – Oct. 4</a>

Warren Buffett loves the S&P 500, but it’s down 88% on Bitcoin

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