Warren Buffett's $140 Billion Fortune Doesn't Include a Single Ounce of Gold

Warren Buffett, the billionaire investor, has zero gold investments in his $140 billion fortune. He views gold as a non-productive asset and believes it does not align with his value investing strategy. Buffett considers gold to be of little use and does not see it as a long-term investment. In contrast, he prefers to invest in productive assets such as farms and businesses, which he believes are superior investments.

Warren Buffett, the renowned investor, has maintained a steadfast position against gold investments. His $140 billion fortune does not include any gold holdings, reflecting his belief that gold is a non-productive asset that does not align with his value investing strategy [1]. Buffett views gold as having little utility and prefers to invest in tangible, productive assets such as farms and businesses, which he considers superior investments.

Despite Buffett's stance, the gold market has shown significant strength in recent months. Analysts from Citigroup, for instance, have revised their projections for gold, expecting it to reach record highs in the short term. The bank attributes this to the crumbling U.S. economy, rising inflation, and changing tariffs [1]. In June, Citigroup projected gold would trade between $3,100 and $3,500, but the recent economic data has prompted them to reset their target, now expecting gold to trade between $3,300 and $3,600 over the next three months [1].

The gold market's resilience is also reflected in the projections of other major analysts. Goldman Sachs analysts predicted gold would end 2025 at $3,700 per ounce, while Reuters' poll of 40 analysts and traders revealed an average forecast of $3,220 per troy ounce by the end of 2025 [1]. Fidelity International even projected gold could reach $4,000 an ounce by the end of 2025, driven by Federal Reserve rate cuts, a declining dollar, and increasing central bank holdings [1].

However, the gold market's performance has been influenced by broader economic factors. While gold investors have seen significant gains, the U.S. economy is struggling, with concerns about a potential recession. The real value of gold investments might be less than perceived due to factors like a weakening dollar and high inflation [1].

Buffett's preference for productive assets aligns with his long-term investment strategy, which focuses on businesses that generate earnings and cash flow. In contrast, gold's value is primarily driven by its scarcity and role as a hedge against inflation and economic uncertainty. While gold has shown strong performance in recent months, Buffett's approach to investing remains consistent with his views on the asset's utility and long-term potential.

References:
[1] https://finance.yahoo.com/news/major-analyst-resets-gold-price-223238517.html