buffett joins gross: avoid bonds

[jk]

the popularization of the itulip theses continues apace:



Buffett Says Avoid Long-Term Bonds Tied to Eroding Dollar

Warren Buffett, the billionaire who urged Congress in 2009 to guard against inflation, said investors should avoid long-term fixed-income bets in U.S. dollars because the currency’s purchasing power will decline.

“I would recommend against buying long-term fixed-dollar investments,” Buffett, chairman and chief executive officer of Berkshire Hathaway Inc. (BRK/A), said today in New Delhi. “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.”

etc

http://www.bloomberg.com/news/2011-0...lar-value.html

[jk]

Re: buffett joins gross: avoid bonds

a bull market is the process of a minority opinion recruiting adherents, until it eventually becomes conventional wisdom. bill gross, warren buffett, and ray dalio are thought-leaders, widely respected and widely quoted. within the last few weeks gross, "the bond king," said he'd sold all his u.s. gov'ts- an implicit comment on the currency as well as long rates; buffett now says avoid duration in u.s. dollars explicitly because of currency risk; and a couple of weeks ago dalio, in both his cnbc interview and his barron's interview, was supportive of commodities and most explicitly gold.

the ideas we've been reading about and kicking around for years on this site are being picked up and circulated, gaining respectability, moving in conventional eyes from being odd, wing-nut, "gold bug" doomsterism to becoming the positions of "leading edge" investors such as john paulson and the three mentioned above. j6p still doesn't have a clue, and is only gradually giving up on "stocks for the long run." give him time.

[c1ue]

Re: buffett joins gross: avoid bonds

Indeed.

And by the time J6P gets there, the vultures and scalpers will be waiting...

[cjppjc]

Re: buffett joins gross: avoid bonds

I think J6P understands stocks for the long term better than almost any other investment idea. Stocks haven't been such a bad place to be these last few years. Hopefully he still owns his home. J6P other long term investment idea.

[GRG55]

Re: buffett joins gross: avoid bonds

a bull market is the process of a minority opinion recruiting adherents, until it eventually becomes conventional wisdom. bill gross, warren buffett, and ray dalio are thought-leaders, widely respected and widely quoted. within the last few weeks gross, "the bond king," said he'd sold all his u.s. gov'ts- an implicit comment on the currency as well as long rates; buffett now says avoid duration in u.s. dollars explicitly because of currency risk; and a couple of weeks ago dalio, in both his cnbc interview and his barron's interview, was supportive of commodities and most explicitly gold.

the ideas we've been reading about and kicking around for years on this site are being picked up and circulated, gaining respectability, moving in conventional eyes from being odd, wing-nut, "gold bug" doomsterism to becoming the positions of "leading edge" investors such as john paulson and the three mentioned above. j6p still doesn't have a clue, and is only gradually giving up on "stocks for the long run." give him time.

J6P will give up on "stocks for the long run" right about the time he/she should be loading up on them...

[jk]

Re: buffett joins gross: avoid bonds

J6P will give up on "stocks for the long run" right about the time he/she should be loading up on them...

i have a couple of friends whom i've asked to let me know when/if they finally buy gold, so i'll know when to sell.

[blazespinnaker]

Re: buffett joins gross: avoid bonds

Yeah buffet is talking his book .. remember, he has all those S&P options that he wants to be in the money via inflation.

[jk]

Re: buffett joins gross: avoid bonds

Yeah buffet is talking his book .. remember, he has all those S&P options that he wants to be in the money via inflation.

everyone talks his book. so what? why would you invest in a way that contradicts your beliefs about the investment merits of your chosen vehicles? and, if so, what's wrong with saying what you believe?

[GRG55]

Re: buffett joins gross: avoid bonds

Yeah buffet is talking his book .. remember, he has all those S&P options that he wants to be in the money via inflation.

The inflation isn't coming from anything Buffett has control over. The inflation is coming from official sector policy decisions that were made in the past to counter the "deflation scares" in 2002 and 2008/09.