Core Viewpoint - The article discusses the historical performance of gold versus stocks, particularly in the context of Warren Buffett's long-standing criticism of gold as an investment, highlighting that an investment in the S&P 500 significantly outperformed gold over the decades. Group 1: Buffett's Critique of Gold - Buffett argues that gold has historically underperformed compared to the stock market, using a comparison of investments made in 1942 [4][5] - An investment of $10,000 in the S&P 500 in 1942 would have grown to $51 million by 2018, while the same amount in gold would have only increased to approximately $400,000 [5][6] - Buffett describes gold as a "do-nothing investment," emphasizing that it does not produce any value or returns over time [6] Group 2: Recent Performance of Gold - An analysis of investing $10,000 in gold through the SPDR Gold Shares ETF since Buffett's 2018 critique shows that the investment would have increased roughly 3.5 times, outperforming the S&P 500 ETF, which would have grown to about $25,390 [10] - The article notes that Buffett's skepticism about gold has been challenged by its recent performance, suggesting that he may have been wrong in the short term [11] Group 3: Historical Context and Long-term Perspective - Buffett has consistently criticized gold investments, with similar arguments made in 2011, where a $10,000 investment in gold would be worth approximately $29,000 today, compared to $49,700 for the S&P 500 ETF [12] - The article concludes that while Buffett may have been incorrect in the short term regarding gold, his long-term investment philosophy generally holds true [12]
Warren Buffett Called Gold a Do-Nothing Asset in 2018. Here's What a $10,000 Bet Is Worth Today.