Worried About the U.S. Dollar
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One of the most famous investors in the world, Warren Buffett is who's had so much faith in traditional cash investments is now concerned with the direction the U.S dollar is headed. The dollar has taken a nosedive direction in its value and it's primarily because of too much overspending by the U.S government. When the dollar falls heavily, what would be the worth of all your dollar saved up?
Buffett will have a meeting with workers of Berkshire Hathaway maybe for the last time, as CEO of Berkshire Hathaway in 2025 but those odds in risk are still leveraged out. The U.S. dollar is down over 8% Year To Date which if it continues will lead to more expensive prices and less buying power of your money.
I doubt we can do anything about it but the right question to ask in this scenario is how do you protect your money?
Who's thinking about buying some gold? Perhaps this is the right time to do so. Gold normally holds value when the dollar falls so I'm thinking that's a safe have still.
Who's thinking about investing in real estate? It's definitely the best time to do so. It's a physical asset that naturally appreciates regardless of what happens. Most forms of asset properties, homes and land normally go up over time.
You can consider investing in other countries markets and currencies. I'm not surprised Warren didn't bring up buying Bitcoin, he's probably still not a believer.
I think the main point Warren wanted to make is diversifying your risk as much as possible.
Buffett has over $300 billion in cash. That is to tell you he is being extremely cautious, because his net worth can burn like a bushfire. You should be worried,if you think about it as well. Yes he's old and it's pointless but his legacy is on the line here.