قالب وردپرس درنا توس
Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Gold Vs. Shares: "The Magic Metal Does Not Match The American Sword" – Warren Buffett

Gold Vs. Shares: "The Magic Metal Does Not Match The American Sword" – Warren Buffett



  Gold Vs. Shares:

(Kitko News) – What would happen if billionaire Warren Buffett made his first investment in gold instead of shares? According to Buffett himself, he would have lost billions, Berkshire Hathaway's chairman wrote in an annual letter to the shareholders. "On March 11, it will be 77 years since I first invested in American business. The year was 1942, I was 11 and I went in, investing $ 114.75, which I started to accumulate at the age of six. What I bought was three shares of Preferred Shares in City Service, Buffett said.

This historic purchase sent the Buffet in the direction he wanted to go. "I was a capitalist and I felt good," he writes.

Now, let's imagine Buffett be worried about the American economic situation and instead bought gold as protection against inflation and market risks.

"To protect yourself, you may have escaped stocks and instead buy 3 1

/4 ounces of gold with your 114.75 dollars. And what would this supposed defense bring? Now you will have an asset worth about $ 4,200, less than 1% of what would be realized by ordinary unmanaged investment in the US business. The magical metal could not coincide with American ability, "Buffett concluded.

This comparison is particularly important in the days of the US National Debt, reaching new record highs on an hourly basis, now more than $ 22 trillion.

"Those who regularly preach condemnation due to the state budget deficit (as I have been doing for many years on a regular basis) may note that our country's national debt has grown about 400 times over the past 77 years. That's 40,000%! Suppose you predicted this increase and you panic from the prospect of avoiding deficits and meaningless currency, "he said. when I made my purchase, the nation expected post-war growth, a conviction that proved to be well-grounded. Indeed, the achievements of the nation can best be described as breathtaking. Let's put the number of this claim: If my $ 114.75 were invested in the S & P 500 index and all dividends were reinvested, my share would rise (pre-tax) $ 606,811 on January 31, 2019 … This is a profit from 5,288 to 1, "he writes.

Buffett also stressed that there is always fear and chaos. But at the end of the day, markets dominate.

"Since 1942, we have seven Republican presidents and seven Democrats. Over the years they served, the country was opposed at a different time with a long period of viral inflation, a 21% premium rate, several controversial and costly wars, president's resignation, a complete fall in home values, paralyzing financial panic and a number of other problems. All created terrible titles; Buffett's letter comes as Berkshire Hathaway, who holds large investments in companies like Apple, American Express and Bank of America, with $ 25.39 billion net loss in the fourth quarter, or $ 15,467 a Class A share, $ 27.6 billion investment losses.

Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not the attraction of exchanging commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accepts no liability for any losses and / or damages resulting from the use of this publication.


Source link