BSE Index Analysis, Securties , Standard Experts
WARREN BUFFETT
Source: CNBC
Stocks will outperform gold and bonds
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| WARREN BUFFETT |
Stocks, or investments in any "productive" asset, will "prove to be the runaway winner" over bonds or gold "over any extended period of time". And "more important, it will be by far the safest.
Bonds "should come with a warning label" right now, because interest rates aren`t high enough to make up for inflation and taxes.
Even though bonds, and other currency-based investments, have a reputation of being safe, "in truth they are among the most dangerous of assets."
As for "non-productive" assets, most notably gold, Buffett argues their "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." While a rising price can encourage even skeptics to join in, "bubbles blown large enough inevitably pop.".
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