Before the end of the negative interest rate I was wondering what about investing my money in raw materials, maybe in gold. Having almost finish my reading of The Intelligent Investor I was wondering why don't he consider gold as a potential investment for the intelligent investor ? I used Dave Lisehgo sum up to see that :
Applied to raw materials its general wisdom remains sound :
- We can base decisions on the value of the underlying business that use the raw materials such as a rare raw material that is going to be used more and more.
- We can buy raw materials that are clearly underpriced in the market.
- Dollar-cost averaging remains critical. We can still but raw materials every months to spread the risks over the period.
But when dealing with defensive or offensive advises he doesn't speak about these kind of assets.