- $US100 invested in US government bonds would have compounded to be worth $US1336 by the end of 2011.
- Gold would have far outpaced cash, turning into $US4455.
- But equities would have done over one-third better, compounding its way to $US6072.
The Oracle of Omaha restates the greater fool (note the lower case ‘'f'’!) theory: “the rising price has on its own generated additional buying enthusiasm, attracting purchasers who see the rise as validating an investment thesis. As "bandwagon" investors join any party, they create their own truth – for a while”.