+1000permport wrote: ↑Sat Jul 20, 2019 1:50 pmThe problem with that Buffett article is that, in my opinion, Buffett's logic is fatally flawed.
He's committing the logical fallacy of the false dichotomy. He's presenting two choices as mutually exclusive when they are not mutually exclusive:
"Would you rather have Pile A or Pile B?"
Obviously, if you had a mutually exclusive choice between farmland/stocks/cash and a pile of gold, everyone would choose the productive assets.
However, investment allocations are not mutually exclusive decisions. The Pile A vs. Pile B thought experiment has no relevance as to whether, say, a 10% allocation of gold is a good diversifier to a stock/bond portfolio.
I think that as a group we should stop leaning on that Buffett article. It's got a hole in its logic large enough to drive a truck right through it.
My sentiments exactly. If we lived in a world where holding stocks/bonds precluded you from holding gold, then Buffett's argument would have some merit. However, we don't live in that world at all. This pile A vs. pile B stuff is nonsense.