Gold As An Investment
Eric Fry discusses the Berkshire Boys (Buffett and Munger) with regard to their disdain for gold. Obviously he disagrees and makes his case for gold.
One interesting analogy he used was by David Einhorn, an investment fund manager and gold investor:
Einhorn’s dig at the Berkshire boys is merely his latest counter-punch against the anti-gold elite. A few weeks back, he likened Fed Chairman Ben Bernanke’s monetary policy to gorging on jelly donuts.
“A jelly donut is a yummy mid-afternoon energy boost,” Einhorn explained. “Two jelly donuts are an indulgent breakfast. Three jelly donuts may induce a tummy ache. Six jelly donuts, that’s an eating disorder. Twelve jelly donuts is fraternity pledge hazing.
“My point,” Einhorn elaborated, “is that you can have too much of a good thing… Chairman Bernanke is presently force-feeding us what seems like the 36th jelly donut of easy money and wondering why it isn’t giving us energy or making us feel better. Instead of a robust recovery, the economy continues to be sluggish…”
“As a result,” Einhorn concluded, “I will keep a substantial long exposure to gold, which serves as a jelly-donut-antidote for my portfolio.”
It might be pointed out that gold has outperformed Berkshire Hathaway over the last decade as shown in this chart by Mr. Fry:
Brian Wilson
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RICHARD RALPH ROEHL
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