One of the most successful investors in the world is avoiding
-tied holdings, arguing that low interest rates and
have made equities more attractive.
Berkshire Hathaway Inc. (
said in his annual letter to shareholders that bonds are "among the
most dangerous of assets" as interest rates hover near record lows.
Buffett said that savvy investors are instead
in equities, contending bonds "over the past century … have
destroyed the purchasing power of investors in many countries, even
as these holders continued to receive timely payments of
Buffett noted that the greenback has fallen roughly 86 percent in
value since 1965, "even in the U.S., where the wish for a stable
currency is strong." While Buffett conceded high interest rates can
"compensate purchasers for the inflation
they face with
," he said that today's economic landscape is rewarding those who
as opposed to other financial instruments.
The Oracle of Omaha transformed Berkshire Hathaway from a textile
maker into a conglomerate with stakes in high profile companies
such as Coca-Cola and IBM (
). His comments echoed those of BlackRock Inc. chief executive
Laurence D. Fink, who also warned this week against investing in
bonds and other currency-tied holdings.