Warren Buffett Is Dead Wrong On Gold

I have so much respect for Warren Buffett. In fact, it's well beyond respect—it is a complete admiration for his dedication to sticking with his philosophy and making ridiculous amounts of money for his shareholders.

I have been studying Buffett's approach and success since the age of 16, when a neighbor of mine who was a stock broker then and my babysitter prior to that when he was a teen himself, told me to start reading up on the Oracle of Omaha. Even I can't shake the feeling that Buffett is losing his magic touch.

During the length of the bull market for commodities, from 2000–2012, Buffett's persistence to sticking with his mandate of avoiding natural resource businesses cost him big-time.

Years prior, even his close and tight relationship with mega-successful entrepreneur Bill Gates, which started in 1991, hadn't convinced him to own even a single share of Microsoft.

That had to be a mistake that cost Warren tens of billions in lost profits. Warren's strategy revolves around Wealth Stocks, but Wealth Research Group has backtested Berkshire Hathaway's performance, and the fact is that Berkshire's massive cash hoard, which is in the tens of billions of dollars, must be partly converted into gold and silver because the USD is practically entering a bear market.

Buffett is an expert at identifying the value of a brand name, like Coca Cola, American Express or Procter & Gamble, and he loves these companies because they don't have to constantly spend marketing dollars to attract customers. But what about gold?

That's the most universally accepted form of money to ever exist. Give a man a gold bar and he'll instantly recognize the value of it. Can you say the same thing about nickel, lead, or other metals?

Gold reigns supreme as the emperor of elements, and that's exactly why mining it brings with it the opportunity for ridiculous gains.

As it stands today, the gold-to-silver ratio is again approaching 80:1, and whenever it reaches that extreme, we've seen the ratio reverse course and mining shares explode to the upside.

Lior Gantz, the founder of Wealth Research Group, has built and runs numerous successful businesses and has traveled to over 30 countries in the past decade in pursuit of thrills and opportunities, gaining valuable knowledge and experience. He is an advocate of meticulous risk management, balanced asset allocation and proper position sizing. As a deep-value investor, Gantz loves researching businesses that are off the radar and completely unknown to most financial publications.

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