0% interest rates

Warren Buffett emailed this note to the directors of his company, Berkshire Hathaway on Tuesday after he heard that the U.S. Treasury sold $32 billion in 4-week bills at a yield of 0%:

This should be bullish for Berkshire. With great foresight, I long ago entered the mattress business in a big way through our furniture operation. Now mattresses have become fully competitive as a place to put your money, and sales will soon take off.

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Joshua Gans
Joshua Gans(@joshua-gans)
13 years ago

The euthansia of the rentier. Bring it on.

Tel_
Tel_
13 years ago

US Treasury bonds recently went to a negative return for the first time in history. Investors are willing to pay a premium just to get most of their money back in three months.