The second major category of investments involves assets that will never produce anything, but that are purchased in the buyer’s hope that someone else – who also knows that the assets will be forever unproductive – will pay more for them in the future. Tulips, of all things, briefly became a…
Fucking brilliant. In the Berkshire Hathaway 2011 annual report, Warren Buffet breaks down everlasting gold bubble.
Ask anyone why gold is so valuable and they’ll immediately tell you that it’s a rare commodity. And that’s true. But beyond its decorative value, which is minimal at best, what value does it actually produce? Very little.
Well, very little beyond selling it to the next fool who will pay more for it.