Warren Buffett

US stocks will outperform cash, probably by a wide margin, over the ten years from October 2008.

“Equities will almost certainly outperform cash over the next decade, probably by a substantial degree.”

Said on

16 October 2008 · New York Times op-ed "Buy American. I Am." (October 2008); reprinted on Crossing Wall Street

Source

Buy American. I Am. · Crossing Wall Street (reprint of New York Times op-ed)

Should come true

16 Oct 2018

How sure they sounded

almost certainly; probably

Categories

Markets

Importance

3 of 5 · High-profile call to buy stocks at the depth of the 2008 financial crisis

Outcome

Accurate Happened 16 October 2018.

From mid-October 2008 to October 2018 the S&P 500 roughly tripled including dividends (about 13% a year, Dow ~9,000 to ~25,000), while cash/T-bills yielded under 1% a year for most of the decade, a substantial margin.

Evidence:

• https://www.crossingwallstreet.com/?p=49203
• https://fred.stlouisfed.org/series/TB3MS