bullish
Thematic: Hedging with Gold
SUMMARY
- If you dig deeper, Buffett is really saying that you can exchange your dollars for gold or you can exchange your dollars for a productive asset such as farmland or an operating business.
- With the latter, you get some yield from the investment with which you can then buy more farmland or operating businesses and thus compound your capital. Snowball.
- If you buy gold, it provides no income and instead you have to pay someone to store it for you so it, in essence, has a negative yield. Made perfect sense!
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