Banks blew up with their long term bonds and interest rate increases. That was quite spectacular.

Developing a solid financial portfolio is more difficult, therefore I suggest you seek expert assistance. The ideas you receive after that can be tailored to your long-term goals and financial desires.

You're not doing anything incorrectly; you simply lack the expertise to capitalize in a down market. Professionals with extensive expertise who must have witnessed the 2008 crisis are the only ones who may profit significantly during turbulent times like this

@@oscarjiron6974 I require suggestions on how to restore my portfolio and create more effective strategies in light of the huge declines. Where can I locate this instructor?

@@AnthonyHart34 I wholeheartedly back financial counsellor Ruth Loralann Brennan, who holds a US SEC licence. She has been helping me for a long with my portfolio. You may look her up online because she has many reviews.

@@oscarjiron6974 Fascinated to know, Her credentials are undoubtedly excellent, Sharon appears to be very knowledgeable. I discovered her online profile and read through her resume, educational background, and qualifications, which were all very impressive. She is a fiduciary, so I scheduled a session with her.

If your gains are not outpacing inflation, you're not saving money. In 2018 inflation was 2.44%. .06% return is nothing.

When Ben Graham wrote that the interest rates were almost 10%

is he now implying we should invest in short term bonds only?

Don't invest im bonds at all They aren't what they used to be, totally useless. Investing in a slow but sustain growth stock like Amazon leads to better results and probably even security at this point.

Ben Graham wrote the Intelligent Investor in a time when bond yields were much higher. Now the interest rates are almost nonexistent.

Agreed! Buffett always does this. He always explains his rationale for things in an incomplete way. It always makes me wonder what his motivations are. He benefits greatly from inflated equity prices, so it may be as simple as that. But Warren Buffett is definitely knowledgeable enough to understand that bonds are not held for their cash flow.

at any give scenario they are a terrible investment right now. Until rates increase to 10% or more that will be the case (and that will probably take a while)

@@diseasefire Rates aren't going to increase organically ever again within the confines of our current financial system. They will rise when there is massive stimulus passed, but it's not going to happen. I have made a killing the last few months on 3x leveraged long term treasuries, and I think this will continue until the next big stimulus. Nothing about our current system is real. Everything is based on government intervention.

@@bradleyboyer9979 its possible but what you are doing is a speculation about their future price. If you are able to predict interest rates you ll definitely make money but i just dont get in that game personally

@@diseasefire I agree on that point. I just don't think they'll ever fo up because of the level of debt in our system. We can't generate enough growth

I’m going thru that book right now, and just got to that part, says to keep 50-50 split of bonds and stocks

Of course you are correct, but Buffett is nearly always misleading about his investments. Everyone know you don't buy bonds for the cash flow. You buy them as a hedge in case equities go down and interest rates fall. These two are beyond frustrating. Charlie Munger is so old and bitter that his judgment about everything is clouded. I would never listen to a word he says.

But he says that BKB has short term bonds (1:44). He is talking about how long term tresury bonds are bad as an investment, as you said it yourself

Luigi Guimarães Luigi , I don’t think he watched the video . Simply saw the title and felt like leaving a comment with his opinion, which is a misguided one at best . Raw land is one of the most speculative investments you can make . You have no idea if you’re going to make any type of return on it especially not in the short term.

Of course you are correct, but Buffett is nearly always misleading about his investments. Everyone know you don't buy bonds for the cash flow. You buy them as a hedge in case equities go down and interest rates fall. These two are beyond frustrating. Charlie Munger is so old and bitter that his judgment about everything is clouded. I would never listen to a word he says.

@@bradleyboyer9979 100% agreed!

You didn't even listen to the video; he says nothing about short-term bonds here, which he often holds. Hot heads are always trying to prove these guys wrong; it's hilarious.

May 5, 2018

He placed an infitismly small portion of his money in gold MINING stocks, not gold. People act like he suddenly became a gold bug when in reality he's still barely involved in that asset type.

His cash holding position are short term bonds. he just doesn't like the math of long term bonds as investments. If you go with the averages your scraping pennies if at all

berkshire is about 80 percent in stocks and 20 percent in cash/short term bonds if i analyzed their capitalization correctly.

@Michael Farkas seems more or less consistent of his $350 billion dollar portfolio - however, that doesn't include any of berkshires wholly owned businesses such as Sees, Duracell, Geico...etc. for the total market cap $770 billion , or even the ~ $590 billion net asset value.

People have been waiting for raising interest rates since 2008, I called it back then that we would never go back to pre-great recession interest rates, just look at Japan. I would predict we never go back to the old normal during the lifetimes of anyone alive today.

Yeah treasuries are a better long hold than gold or other commodities as a hedge. People run to treasuries when things are bad. When things are good you collect a small coupon. Better hold Tbills than cash

nothing has a stronger consistent negative correlation to the sp500 than the 20-year US treasury bond. absolutely agree on Roots, bad times will always and have made treasuries increase in value and to rebalance into that strength into a weak stock market via rebalancing- amazing.

They're bad investments for the long term but can be short term hedges against the rest of your portfolio

ETF don't provide sustainable income though, they're essentially like a share price.

Bad investment ..

Glad to see your comment in here. People need to be able to adjust portfolios as rates change. A 60/40 stock bond portfolio is too umbrella to have vast underperformance in the long term. Getting more aggressive on bonds when yields are aggressive and the Federal reserve is hinting at potential hike slow, is a great time to begin purchasing(potentially). But even in evaluating time horizon, people in their 20’s (in my opinion) should not have more than 10% in bonds. Risk needs to be accepted in the younger years to have any meaningful return. There’s a reason Microsoft, JNJ and one other I can’t think of at this moment corporate bonds are rated safer than US treasuries.

Risk if deflation 2024 and incr fiscal deficits >inflation>returns.

$tlt at 94 now and YTD return is -2.26% while SP 500 is up 22%. Not entirely sure what you meant by it won't age well. :D

@@lyrikaljatt you're not too bright... this was posted over 1yr ago, when TLT was above $100, it was around $120 at the time I posted this. I said when it hits "84" which it did.. now we ride the wave up to $180... you tried to smart and played yourself

@@cashrules520 Great, you are totally smarter than Warren Buffet. 👍

Here here. I am 3 quaters reading a book by Tony Robbins and he talks about the all weather portfolio by Ray Dalio. Bonds are one element that's need. And as it's said you might not get rapid returns but your money will be safe. Slow and steady wins the race.

@@jonbloor5064 Exactly. Like I said, people should invest in the stock market if they want to maximize their returns. Which I do by the way. However, the stock market is very risky and I think it's absolutely foolish for anybody regardless of their age to put all of their life savings into stocks and mutual funds. One day your portfolio might be looking really good, but because the stock market is so volatile the next day which may be the day you have to retire your portfolio could be flushed down the toilet due to a stock market crash. I'm thirty years old and yes I put a lot of my savings in stocks and mutual funds, but I also put a portion of my savings in CDs and Government bonds, because the returns on those investments are far more guaranteed. I won't make a lot of money off of those investments, but I know it's highly unlikely I will lose any money on those investments as long as I hold them to their maturity which I have every intention of doing. It's all a matter of keeping your portfolio balanced. Have a part of your portfolio that will maximize your returns but is high risk and have part of your portfolio that is lower on returns but the returns are more guaranteed and your money is much more protected. At the end of the day, it all depends on what your individual financial goals are.

This is number 1 bullshit

if you had all your money in stocks at any of those bad times your wealth would only go down by 50 percent and would recover and push much higher just a few years later.

Do what you do. Keep learning and invest ( and hold) wisely. Maybe you ( and I ) did not start young but we have started. Keep your head. UP

@DLee C Thank you for the kind words, I appreciate that!

Buy I Bonds before May 2022 to lock in a great rate.