Tren Griffin @trengriffin I work for Microsoft. Previously I was a partner at Eagle River, a private equity firm established by Craig McCaw. I am on the board of directors of Kymeta. May. 02, 2020 1 min read

Would you rather own:

(1) 30 year US Treasury bonds yielding 1.27%

Or

(2) shares in a high quality business?

Does your answer explain why some scarce assets like high quality stocks are holding their value better than most stocks, despite the current state of the economy?

"Over the last 20 years investments in important kinds of bonds have outperformed the stock market. That includes long-term Treasuries, long-term corporate bonds and high-yield (or junk) bonds."

Have bonds performed better than high quality businesses?  https://news.google.com/articles/CAIiEKpDd_snUGKoYQAIvjwl56IqFwgEKg8IACoHCAowjuuKAzCWrzww9oAY?hl=en-US&gl=US&ceid=US%3Aen 

"We’ve really made the money out of high quality businesses. In some cases, we bought the whole business. And in some cases, we just bought a big block of stock. But when you analyze what happened, the big money’s been made in the high quality businesses."

Charlie Munger


You can follow @trengriffin.



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