Warren Buffett: I can't imagine anyone having bonds in their portfolio

"Warren Buffett: I can't imagine anyone having bonds in their portfolio"

He obviously doesn't have a very vivid imagination. I have frequently imagined that I was Superman.

When Warren Buffett speaks you should listen with interest.

When I agree with him, then it makes it even more interesting!

The salient points to consider before you rush to sell your bonds and buy equities are.

"It's quite clear that stocks are cheaper than bonds"

"Wall Street does a lot of good things, and then it has this Casino"

He forgot to mention that you can also hold cash on deposit or gold.

Yes you can have cash on deposit and get 6 or 7% in Australia with first rate banks.

I can only assume that Mr. Buffett is talking about buying treasuries or other government debt, all of which are clearly overpriced.

Warren Buffet, Bill gates,et al, are privileged to dwell substantially outside the province of most other people governed by the statutes of the state; they make very considerable charitable donations that may be the equivalent of a tax - I've made no evaluation - but even these are made of their own choosing; one could argue that such monies should come under state governance in the form of taxation. To that extent it would make little difference to Warren Buffet, though of course he would lose the privilege. A cynical view, daresay.

Never thought I'd agree with Warren Buffett, but he's absolutely right about bonds.

Pauline - With UK banks being sick, Irish banks almost dead, and Icelandic banks dead and buried, do you really expect UK pensioners to send their hard-earned money 12,000 miles??!!?! I'll stick to my self-select shares ISA, thanks. And I get more than 7%.

If as Warren Buffet advises we raise the taxes on the rich, will they not up sticks and go to live in Zimbabwee?

Unless economies go to hell in a hand basket of depression, Buffett should be right about bonds - eventually. More taxation on the rich may be a necessary, especially politically, as part of getting deficits down, but the numbers involved are not large relative to the overall scale of the problem. If pushed too far, there is a risk that potential wealth creators focus primarily on tax management, as opposed to more productive economic activities. This was the case that led to it becoming generally accepted after the 1970s that top tax rates had been far too high.

I think gold is too high.The higher it goes the more they jump on the band waggon.Could this be the next 'BUBBLE'.

If Warren Buffet holds any gold,i bet he bought it 2-3 years ago.what happens if he and all the other big guys suddenly sell. They buy low sell high.

One of the most interesting comments I heard recently was from a gold market watcher who said deciding when to jump ship on gold will be the most important investment decision investors will make next year. There seems too little certainty around yet to be able to call an end to the gold run but the risk of a sharp retreat next year seems to be playing on a lot of peoples' minds.

I suspect his remarkes were taken out of context, given the following, from a report dated August 10th this year. "Berkshire" is of course Berkshire Hathaway, his very successful investment vehicle.

"Berkshire’s fixed-maturity portfolio was valued at $32.1 billion as of June 30, compared with $35.1 billion a year earlier. Holdings of non-U.S. government debt dropped 7.7 percent to $10.2 billion in that period, and corporate bonds declined 3.9 percent to $12.7 billion. Investments in Treasuries and agency securities slipped 7.3 percent to $2.25 billion.

Investments in equities had a market value of $54.7 billion as of June 30, led by holdings of Coca-Cola Co., Wells Fargo & Co. and American Express Co. The firm had a cash hoard of about $28 billion."

Looks to be one or two bonds in there.

Warren' Buffet's philosophy ,which has served him so well throughout is to identify highly-undervalued shares and hold them for the long-term,avoiding"churning." All other comments about other types of investment are a distraction.

If Buffet wants to ease the plight of lower-paid taxpayers, why doesn't he just donate his fortune direct to Uncle Sam? Instead it will go to Bill Gates' no doubt well-intentioned charity.

However, from my close personal observation of many large charities over a long period, I can tell readers that vast amounts of "charity" money are siphoned off by well-rewarded management and hangers-on. Once charities reach a certain age, and the founders are long gone, their main aim is often to perpetuate the cushy lifestyles and pensions of the fat cats at the top. (Animal charities are sometimes noted for this largesse.)

I once helped raise a large six figure sum for a well known national charity. On the handover day, a team of limo-driving, smart-suited PR persons and officials arrived at my offices, offering to take me out to lunch at a very expensive restaurant. They were surprised when I declined.

I inquired further into their salaries and was amazed how high they were.

Bear this in mind next time a tin is shaken under your nose......