There’s been a bunch of press lately about how Warren Buffet dislikes bonds (and gold) and loves stocks. In particular, he warns on bonds and inflation being a bad combination. Yes, they are. That’s why you shouldn’t own just bonds (or any single asset). He also advises (according to this article which may be wrong) that investors be 100% in stocks. Yikes!Read the rest here.
Well I thought it would be interesting to crank up www.stockcharts.com and see how he’s done with his company Berkshire Hathaway (BRK.A). Going back as far as stockcharts.com allows for these funds (1999), we can see how he compares against the maligned US Treasury Long Term Bonds (Vanguard’s version), Vanguard Total Bond Market, and Short Term Treasury Fund also from Vanguard (interest and dividends included):
Berkshire Hathaway vs. Long Term Treasuries vs. Vanguard Total Bond vs. Short Term Treasuries
Ooops... That tarnishes someone's star.