Tom Mathies: “If an Andy Day is coming up you can just link to this adaptation from Warren Buffett’s latest shareholder letter. You won’t be surprised by his comments on gold.”
☞ I’m not. Nor am I surprised by his quoting Shelby Cullom Davis: “Bonds promoted as offering risk-free returns are now priced to deliver return-free risk.”
But while I own no bonds,* I’m not out of gold. It’s up a lot since suggested here in 2009 and 2010 – and even up nicely since this comment last May. I hang on to much of it because – just as Warren likes to keep $20 billion cash on hand to feel comfortable – I don’t mind tying up a little of my vast fortune (which rivals his down to all but the last several zeroes) in gold, lest paper currencies continue to lose their value.
* I’m even out of the TIPS that have appreciated so nicely – because they have appreciated so nicely. When first suggested, they yielded a ridiculously good 4.25% above inflation. Today, depending on their maturity, they yield little or nothing above inflation (and, because they sell at a premium, may actually carry a small negative yield). Going forward, they may not hedge inflation as well as stocks or real estate (click that Warren Buffett link).
7 MINUTES WITH CAPTAIN SULLENBERGER
Watch and listen, second-by-second. Wow. (Thanks, Alan S.)
Quote of the Day
We've forgotten all the sacrifices that the people who've gone before us made to give us this wonderful life that we have. We accept it; we take it for granted; we think it's our birthright. The facts are, it's precious, it's fragile -- it can disappear.~Ross Perot, 1988
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