There’s something about being insanely rich that people will believe every word that comes out of your mouth no matter how bizarre.
And no, I’m not talking about Donald Trump. Warren Buffett is an even better example.
As one of the richest men in the world, Buffett’s opinions carry almost Biblical impact, even when they might be completely ridiculous.
Just a few days ago, for instance, he quipped that drinking Coca Cola is better for him than eating broccoli.
He’s also famously expressed contempt for owning gold, suggesting instead that people should simply own a US stock market index fund (like the S&P 500) and hold it for 50 years.
Curiously, though, gold has vastly outperformed both the S&P 500 and Dow Jones Industrial Average over the past half-century.
While the S&P 500 index is up 24.3x in that period and the Dow Jones Industrial Average is up 18.2x, gold has appreciated 36.6x.
This post was published at Sovereign Man on May 4, 2016.