At 88, Warren Buffett's white hair, bushy eyebrows and aw-shucks grin hardly make for an intimidating visage. But he is one of the most powerful investors in the world, thanks to his Midas Touch on Wall Street.
And in that time, he's been very, very good at it. Buffett is worth $82.5 billion, according to Forbes, making him the third richest person alive ."Now if they think they can dance in and out [of the market] and buy and sell stocks, they ought to head for Las Vegas. I mean, they can't do that," Buffett told"Squawk Box" October 2014.
"If you save money, you can buy bonds, you can buy a farm, you can buy an apartment/house — or you can buy a part of an American business," Buffett said in February."And if you buy a 10-year bond now, you're paying over 40 times earnings for something whose earnings can't grow. You compare that to buying equities, good businesses, I don't think there's any comparison.
Meanwhile, the benchmark S&P 500 Index has averaged an annual return of 10.2 percent over the past 30 years, according to FactSet.Clearly, even as Buffett himself has said, anything can happen in markets. If bond interest rates overtake stock market returns, then this advice no longer holds."But I would say this: If the 10-year stays at 2.
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