Returns over Last 20 Years... Berkshire Hathaway: +387% Gold: +488%pic.twitter.com/tsX3QgpfPC
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Berkshire substantially outperformed gold in the 60s (when its price was artificially fixed) and the 1980s and 90s (when boomer demographics and tech progress gave us big economic growth). It underperformed in the 70s and was a wash in the most recent 20 years.
The Buffet/Munger strategy depends on finding productive business opportunities & moving capital from mature to growing companies. Now sitting on tons of cash because there are few productive opportunities given the declining demographics and tech stagnation.
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They performed rather poorly during the crisis years of the early-to-mid 1970s. (As did the stock market in general. But gold greatly outperformed them both).
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Gold also outperformed the stock market in those years.
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Indeed. IIRC gold went from USD$35 as fixed under Bretton Woods to floating at (briefly) $800, and consumer price inflation (CPI) was also high. The Dow Jones stock index was roughly unchanged from 1970 to 1980, but down about a factor of ten in CPI-adjusted terms.
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CPI and oil is also a useful report to build with e.g.
@FRED or pandas-datareader. We're floating! -
A maybe more helpful question/fixation might be: how can we most efficiently get capital to firms doing good things for global
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Would higher oil prices (regardless of supply) with revenues invested in clean alternatives be good for all involved!
End of conversation
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That was their old strategy from decades ago. Their current strategy is to wait for an economic downturn and then use their connections to Treasury officials and Wall Street to get sweetheart deals.
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And relying on said companies getting a fat bailout when recession hits proping up your stock value
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And buying into companies that receive Fed/Gov bailout. Inside baseball?
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