Articles
-
Why Warren Buffett still doesn't like investing in gold
In an article published in Fortune Magazine, based on his upcoming annual Berkshire Hathaway shareholder letter, Warren Buffett again reminded everyone how little faith he has in gold.
Buffett once observed, “Gold gets dug out of the ground, then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.”
Buffett places gold in a major category of investments which involve “assets that will never produce anything, but that are purchased in the buyer’s hope that someone else-who also knows that the assets will be forever unproductive-will pay more for them in the future.”
“This type of investment requires an expanding pool of buyers, who, in turn, are enticed because they believe the buying pool will expand still further,” he asserted. “Owners are not inspired by what the asset itself can produce-it will remain lifeless forever-but rather by the belief that others will desire it even more avidly in the future.”
“The major asset in this category is gold, currently a huge favorite of investors who fear almost all other assets, especially paper money (of whose value, as noted, they are right to be fearful)” Buffett said. “Gold, however, has two significant shortcomings, being neither of much use nor procreative.”
Read full article
-
Authorized Person for MEX NEPAL
Mob: +977 9856030634 -
Biratnagar Branch Manager
Mob: +977 9852033934 -
Our Clearing Member
-
Our Banking Partners
-
-
-
