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re: Is it time to buy gold?

Posted on 7/31/15 at 8:32 pm to
Posted by LSURussian
Member since Feb 2005
126966 posts
Posted on 7/31/15 at 8:32 pm to
quote:

Because Mr. Buffet's shares of his company sit there and pay a dividend? Or because they sit there, and either appreciate in value, or depreciate in value? Much like gold sitting in a safe?


I assume you're trying to be humorous here since you're a Berkshire stockholder.

Almost all, if not all, of the companies in the Berkshire portfolio pay dividends to Berkshire and in some cases very significant annual dividends. Those dividends stay in the holding company level thus increasing the equity capital of Berkshire while providing huge amounts of unencumbered cash for purchasing additional companies when the right opportunity comes which increases the value of Berkshire shares even more.

It's an investment cycle that Buffett & Charlie Munger have nearly perfected to the great benefit of shareholders.

How is that like gold? Does gold accumulate dividends paid into it thus increasing its value which allows its owner to buy additional gold?

If you were trying to make a serious comparison between how gold and how the value of Berkshire shares increase in value, it is a majorly flawed comparison.
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