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I believe that his speculation argument against gold holds for the stock market as well. Investors create feedback loops when they buy stocks that then creates
by reedlaw 15y ago
I believe that his speculation argument against gold holds for the stock market as well. Investors create feedback loops when they buy stocks that then creates even more demand. Buffet believes in the S&P and so he will naturally encourage others to do so.
- kyrsey 15y agoThe value of anything can be propped up by speculation, what varies is the value which can be maintained without speculation (e.g., in cases where the bubble bursts). I think this is the use of discriminating among (A) resources reasonably expected to decline in value, (B) resources expected to 'hold value' modulo speculation, (C) resources expected to have ongoing returns with or without speculation.