Wednesday, June 9, 2010

Preserve Your Wealth

Cash won't be King; buy and hold real assets like commodities, real estate, raw land, etc... In the near future (three years maybe sooner), you will be much more worried about preserving your wealth than making a huge profit. Here are some reasons why I think this way:
  1. U.S. government expanded money supply from 500 billion in late 1990s to over 2 trillion in 2010
  2. Warren Buffett stated “Today people who hold cash equivalents feel comfortable. They shouldn’t. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value.”
  3. $45,000 today has the same purchasing power of $5,000 in 1950
  4. $5,000 held from 1913 is worth about 5 cents today
  5. US debt hits a record of 13 trillion

1 comment:

  1. Sometimes it doesnt take a whole lot to make a lot of sense. Well said. - Johnson

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