Will Buffett Diss Gold Again in Annual Report Tomorrow?
Doubtful but he already has an excellent piece out comparing gold to farmland. I own all three-Berkshire, Gold and Farmland and BRK has been the winner so far, followed by land and than gold. Farmland pays you rent so other than a communist revolution it will always outperform gold over any one's lifespan.
If you took all the gold in the world, it would be valued around $7 trillion. This would equal about 1/3 of the value of all U.S. stocks. By comparison, the value of all farmland in the U.S. is about $2.5 trillion. You could take that farmland, add 7 Exxon Mobils to it, and have an extra $1 trillion to boot. What’s a better use of funds? You could probably do more with these alternatives to gold, versus just staring at a giant block of gold that looks nice but doesn’t actually do anything."
Since he wrote this piece about 2 years ago gold is up about 5% verses a return of 30% plus for the price of Berkshire and as I've said before-my farmland actually paid me rental income that I could spend while at the same time I help to feed the world.