Had a pre-teen Buffett been frightened by the impending state debt (which earlier this year exceeded $ 22 trillion for the first time) and instead chose to invest their $ 114.75 in gold in 1942, it would be worth drastically less today.
"In order to" protect "yourself, you may have deprived of shares and opted to buy 3 1/4 grams of gold at $ 114.75, and what would that presumed protection have provided? 4,200, less than 1% of what would have been realized from a simple, uncontrolled investment in US business, the magic metal was no match for the American met, "Buffett wrote.
The point of the calculations was to demonstrate the long-term, long-term growth of the US economy. Any company that has grown in the United States owes some of their success to being part of a growing economy, he argues. So with Berkshire Hathaway.
"Charlie [Munger] and I often acknowledge that much of Berkshire's success has simply been a product of what I think would be called The American Tailwind. It is beyond the arrogance of American companies or individuals to boast that they have" done it alone, "Buffett wrote." However, over the next 77 years, the biggest source of our winnings will almost be given by The American Tailwind. We are fortunate ̵
At a time when national politics are particularly polarized, Buffett points out that the US economy has grown over both democratic and Republican authorities and catastrophic events.
" Since 1942, we have had seven Republican presidents and seven democrats. In the years they served, the country faced various times with a long period of viral inflation, a 21% prime rate, several controversial and costly wars, a resignation of a president, a pervasive breakdown in home values, a paralyzing economic panic and a host of other issues , "Buffett wrote." All listed scary headlines, everything is now history. "