The Curious Case of Buffett Vs. Bonds
Warren Buffett's claim that bonds are "among the most dangerous of assets" is understandable within the context he's using. But it is also irrelevant for almost all actual investors.
For those who haven't seen it, here is a summary of his argument. He describes bonds as a "currency-based investment" that is subject to both inflation risk and taxation. He presents some statistics showing that, since 1965, a tax-paying investor in U.S. Treasury bonds has had all of their nominal return eaten up by taxes and inflation. He then goes on to say that, particularly given how low interest rates are today, the odds are low that an investment in Treasuries can overcome inflation and taxes going forward....1107 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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