Warren Buffett Also Said

Discussion in 'Economy' started by CrusaderFrank, Jan 3, 2013.

  1. CrusaderFrank
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    CrusaderFrank Diamond Member

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    Warren Buffett also said that US bonds, that account for 100% of the Social Security "Trust Fund" (LOLz) are a capital graveyard and sure way to lose purchasing power.

    "High interest rates, of course, can compensate purchasers for the inflation risk they face with currency-based investments -- and indeed, rates in the early 1980s did that job nicely. Current rates, however, do not come close to offsetting the purchasing-power risk that investors assume. Right now bonds should come with a warning label. (Highlighted my me)

    Under today's conditions, therefore, I do not like currency-based investments."

    Warren Buffett: Why stocks beat gold and bonds - The Term Sheet: Fortune's deals blogTerm Sheet

    Buffett recommends investment in businesses that produce real returns (Coca Cola, Exxon Mobil, etc.)
     
  2. Toro
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    Toro Diamond Member

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    Agreed.
     
  3. Oddball
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    Oddball BANNED Supporting Member

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    But the money has its full purchasing power for the politicians who have sacked the fund for all its cash reserves...Which is the point.
     
  4. EdwardBaiamonte
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    EdwardBaiamonte Gold Member

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    But the liberals tell us not to worry since their Trust Fund, while 100% depleted at the moment, is backed by the full faith and credit of the United States. And the United States is only $16 trillion in debt and only going deeper in debt at $1 trillion a year. And only 10,000 new folks are retiring a day!

    Personally if i'm going to let someone borrow I look for someone just like that. Huge debt, going deeper, and sky rocketing new obligations every day are a sure sign they are good risk,...if you are a liberal.

    And hey if you do get paid its a whopping $12k a year not the $60k a year you'd get if you had put 12.5 % of your lifetime income in a private account!! And this is not to mention the $1.4 million estate you'd leave your kids if you has a private account.
     
    Last edited: Jan 3, 2013
  5. freedombecki
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    freedombecki Let's go swimmin'! Supporting Member

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    I would question investing in Coca Cola, because I think the future trend is going with health and not with sugar and corn-syrup based products. I think future people will care that their children are raised on healthful foods, not empty-calorie foods that wipe out potassium from the body and set people up for getting cancer like carbonated beverages.

    As a matter of fact, if Hollywood continues its love affair with the Obamas, i think they will get on board with Michelle Obama's push for healthier foods by making health fashionable.

    And that's why I don't agree with Mr. Buffet on everything that worked in the past. Future people will be a little smarter than we are. I think obesity will be a thing of the past in 25 years, and people will go back to being as slim, if not slimmer than people in the 50s.

    It is a health issue, and preventive health will be the new glamor stock.

    Just sayin'. :eusa_whistle:
     
  6. EdwardBaiamonte
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    EdwardBaiamonte Gold Member

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    as importantly Buffett said that he was putting all his money in a tax exempt foundation so the government could not waste it when he died!!
     

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