One of the richest men on the planet, whose fortune is estimated at $ 50 billion, told where to direct their investment costs.
Legendary investor Warren Buffett published his annual address to the shareholders of Berkshire Hathaway, in which he shared his opinion with respect to the attractiveness of financial instruments, reports Lenta.ru
Buffett advises investors to avoid bonds, mortgages, and gold. Low interest rates and inflation have to convince investors to buy the bonds, however, in the opinion of Buffett, it would be a serious mistake.
"Bonds are among the most risky assets. During the last century the papers destroyed the purchasing power of investors in many countries, even if the owners continue to receive timely payment of principal and interest," - said the billionaire.
However, he noted that the high level of interest rates may offset the inflationary losses to buyers when they are faced with currency investments, but the current rates are too low, so at this stage of bonds better round.
Buffett also said that risky investments can be considered as the financial market, mortgages and bank deposits. At the same time, Buffett has been accused of that one of its specific investment strategies were buying decliners after the negative forecasts of assets.
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