Warren Buffett Called This Asset "Unproductive," But Now It's Crushing the S&P 500, the Nasdaq, and even Nvidia

Warren Buffett is one of the world's greatest investors, having steered the Berkshire Hathaway holding company to a compound annual return of 19.9% since he became its CEO in 1965. In dollar terms, a $1,000 investment in Berkshire stock back then would have been worth a whopping $44.7 million at the end of 2024, whereas the same investment in the S&P 500 (SNPINDEX: ^GSPC) would have grown to just $342,906. Buffett invests in companies with steady growth, reliable profits, and strong management teams. He especially likes companies that return money to shareholders through dividends and stock buybacks, because they compound his returns much faster. In other words, he's a big fan of assets that produce income.That's why Buffett isn't a fan of gold. In his 2011 letter to Berkshire's shareholders, he actually referred to it as an unproductive asset because it doesn't generate any revenue or earnings. However, the shiny yellow metal has delivered an eye-popping 62% return this year, crushing the S&P 500, the Nasdaq-100, and even artificial intelligence (AI) powerhouse Nvidia, which have gained between 13% and 32%.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool