Warren Buffett’s long view
Warren Buffett, one of the most successful investors of all time, is not in agreement with sceptics about the future of the US economy. In his much-followed annual letter to the shareholders of Berkshire Hathaway, the billionaire investor said that for the last 240 years it has been a mistake to bet against the US and this is not the time to start.
Even as the economy is growing at a slower pace, consistent with his investing style and taking a long-term view, Buffett argued that kids born in America today are the luckiest in history. Even at 2% real growth, showed the Sage of Omaha, the per capita real gross domestic product will go up by 34.4% in the next 25 years and the next generation will lead a much better life than their parents.
With history on his side, there is a good chance that Buffett will be proved correct once again. But such long-term views may not cut much ice with politicians and the voting public in an election year in the US.