Saturday, February 11, 2012

Warren Buffett Says Buy


Warren Buffett is making his case.

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."

Buffett lays out the argument in a bylined article appearing in Fortune's February 27 issue and on its web site. It's described as an "adaptation" from his upcoming annual letter to Berkshire Hathaway shareholders.

Fortune's Carol Loomis edits that letter each year with Buffett.

In the piece, Buffett argues that 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."

Buffett says Berkshire holds U.S. Treasury bills only to make sure the company has quick access to cash if it is suddenly needed.

via [ CNBC ]

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