The investor's harsh comments towards gold managed to generate the most controversy. However, he also held no punches when discussing government-issued Treasuries and other currency-denominated instruments.
According to Buffett, the supposed safety of these investments is largely a fallacy. In actuality, when accounting for currency depreciation and taxes, the Berkshire chairman notes that these instruments have a historical knack for destroying an investor's purchasing power.
Buffett admits that his firm maintains ample exposure to Treasuries and other instruments that fall into this category. Nevertheless, he goes as far as to label these investments, "among the most dangerous of assets."
As this run-up has persisted and the bull market has ventured into its third year, a number of historical and psychologically-important benchmarks have begun to enter the market discussion. For weeks, the Dow Jones Industrial Average has been flirting with 13,000 -- a level last seen in 2007. Meanwhile strength from companies like Apple (AAPL) has helped to propel the Nasdaq composite index to heights not seen since the start of the new millennium. At the same time that stocks have surged, Buffett's spurned assets have floundered. Gold spent much of the opening weeks of the year heading higher. This early-year rally faltered in late-February, however, and since the start of the month, gold prices have struggled to stabilize. Over the past few weeks, shares of the iShares Gold Trust (IAU) have returned to levels last seen in mid-January. Performance is still positive for the year. However, a handful of commentators and have begun to question whether the gold bull has run out of steam.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV