Saturday, March 26, 2011

Warren Buffett Disses Long-Term Bonds and the Dollar

Every once and awhile Warren Buffett forgets that he is a now oligarch, and he gives some sound advice "for the people". Bloomberg reports Buffett said;

I would recommend against buying long-term fixed-dollar investments. If you ask me if the U.S. dollar is going to hold its purchasing power fully at the level of 2011, 5 years, 10 years or 20 years from now, I would tell you it will not.

I would much rather own businesses. It’s very easy to take away the value of fixed-dollar investments.
Buffett also warned about social networking companies as investments:
Most of them will be overpriced. It’s extremely difficult to value social-networking-site companies. Some will be huge winners, which will make up for the rest.

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