Quote:
Originally Posted by macker
It will also show you returns back to inception. I don't think Buffett likes Gold because it is stable/safe and cannot be easily manipulated with news broadcasts, rating agencies, or the crash and burn of a CEO. Gold is Gold and there is a limited supply on the planet. When Gold goes up it is for a very good reason as it is a sign of financial unrest because it is a stable item. Buffett knows how to play/manipulate the market and knows how the media, government or management short commings can cause a stock to rise or fall. He can also cause fluctations in the market as he sees fit. In the hearings before congress (WHICH HE HAD TO BE SUBOENED FOR) he was asked how the rating agencies could make such large mistakes when rating the banks that failed. He answered that it was all a mistake. Rating companies are paid by the companies they rate so how would you rate a company that is paying you millions of dollars to give them a stock rating. The companies received good ratings because they were manipulated by the rating agencies, which Buffett has also been heavily invested in (13% shareholder of Moodys : top shareholder) and the stock holders. I can see why Buffett doesn't like Gold....It cannot be manipulated in this fashion and therefore it is not an investment tactic used by people like Buffett.
http://blogs.reuters.com/felix-salmo...s-pr-disaster/ |
Safe ha tell that to anyone invested in gold during the early 80s.