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.