Gold & Real Estate are Not Investments - Warren Buffett's testSubmitted by Smaulgld.com on Fri, 05/31/2013 - 14:28
Warren Buffet is famous for his criticism of gold as an investment. He might as well argue that stamp collecting is not a team sport.
Gold is not an investment. Your primary residence is not an investment. These are not investments any more than a cup of tea is. They are assets.
What’s the difference between an asset and an investment?
The Asset Fondle Test
We’ll use Warren Buffet’s criticism of gold to forge a definition of an asset: