nport

Buffett Gets 'Comeuppance' After Gold Outperforms

Utter non-sense. I've got better things to do than read junk. First of all, Gold has no intrinsic value. When you buy it, you pay for storage, and it doesn't earn a nickel in interest. It is a great long run hedge against inflation. Period. I buy assets when they are out of favor. So to hedge my portfolio in 2000, I bought a major gold stock (gold at 300, now gold at 900), I still hold the stock, albeit I haven't yet made out too well. Stock has gone nowhere. Well doubled, but that's over 9 years, so that's 8% compounded annually. Better than a poke in the eye but, come on, how in earth can you compare Buffett's performance over a short period with the price of meat in Russia. Buffett is without question the greatest investor of our time. I'm certain that if his health holds out that BRK will outperform the S&P smartly over the next 5 -10 years. Look, the reason stocks do best over time has to do with the capital accounts. Companies are worth more over time,, because unlike Art, & Gold, (BOTH speculations AT ALL TIMES), the stock of a company must grow to reflect retained earnings. That is why over time, the market is a weighing machine as Ben Graham put it, and over short periods, it's nothing more than a voting machine as idiots like you compare apples and oranges and try to out guess one another on the short term..pooh, I got better things to do.

Stocks Will Fall 37% or Gold Will Rally 60%

It's a question of how you view the future. I bought Homestake Mining in 2000 when Gold was at $275-300. Paid $15 - the company was acquired by Barrick Gold. So I'm long ABX as a hedge on my portfolio. I won't sell unless I get big bucks. Don't speculate on the price of Gold or Art. That depends on Mr. Market and you know how how manic-depressive he/she can get. Just find great companies to buy that have competitive advantages; stay long, keep the faith. It isn't either or; stocks can and will be the core of the long run portfolio; however, hedge when precious metals are out of favor. For they will forever find a way to keep pace with inflation. And inflation..is coming.