Warren Buffet inspires many to join the world of investing. One area of investing Warren Buffet isn’t too keen on is investing in gold. In past interviews, he has expressed his disinterest in investing in gold compared to investing in stocks. He had a lot to say about gold back in 2012, making some interesting comparisons between gold and stock market investing.
In an interview with CNBC on July 5, 2012, Warren Buffet compares investing in Berkshire when he took it over compared to investing in gold. Warren Buffet says, “When we took over Berkshire. Berkshire was selling at $15.00 a share and gold was selling at $20.00 an ounce and then gold is now $1,600 and Berkshire is $120,000.00.” Warren Buffet clearly has strong opinions about investing in gold. According to this quote, the value of stock is much greater than the value of gold long term. A third of the value of all stocks in the United States would be a much greater investment long term because his philosophy is that most stocks go up over time.
This financial comparison would make anyone wonder why gold is such a popular investment for many people. The main concern for many people interested in investing in the stock market is fear of a stock market crash. With that said, it has never stopped Warren Buffet from investing in the stock market. He will probably not be seen investing in gold any time soon based on what he has said in the past about investing in gold.