Warren Buffett Also Said

[CrusaderFrank]

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.)

 

[Toro]

Agreed.

 

[Oddball]

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.

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.

 

[EdwardBaiamonte]

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.

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.

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.

 

[freedombecki]

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.)

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'.

 

[EdwardBaiamonte]

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.)

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'.

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!!