Recently came across an interesting article from Buffet. He mentioned this in his 2000 annual letter. In short, Buffet argues that in order two enjoy double digit returns (as seen from 1982 to 1999), two things must happen. 1. Interest rates must fall; and 2. Corporate profits as percentage of GDP must increase. Given that interest rates are already at 0 and corporate profits are declining, we should temper our expectations for next 10 year returns. We can expect 4% - 6% in aggregate instead of 8% - 10%.
What do you think about this?
Submitted September 10, 2020 at 05:39PM by 123archer https://ift.tt/2RfqNta
