As the war in Ukraine continues, more and more folks are beginning to wonder how all the different variables involved will begin to affect things all around the world. One aspect is inflation, gas prices, among other things, but what about money in the grand scheme of things? Well, billionaire Warren Buffett spoke about this very subject back in 2014. Indeed, Warren Buffett had a major money warning if America does go into a “very major war”.
What to Know:
- Warren Buffett’s advice on money in the event of a “very major war”
- How does it effect everyday Americans
- What can they do?
He told the Sydney Morning Herald at the time, “If you tell me all of that’s going to happen, I will still be buying the stock. You’re going to invest your money in something over time. The one thing you can be quite sure of is if we went into some very major war, the value of money would go down – that’s happened in virtually every war that I’m aware of. The last thing you’d want to do is hold money during a war.” So, Buffett’s warning is that if the United States were to venture out into another major war, the value of money would go down. He came to that conclusion from what happened in previous wars for the United States.
Warren Buffet on Money & War
But what does all that mean for the everyday American? What does that ultimately mean for folks who might be worried about what’s going on between Russia and Ukraine overseas? Buffett continued, “You might want to own a farm, you might want to own an apartment house, you might want to own securities. During World War II, the stock market advanced — the stock market is going to advance over time. American businesses are going to be worth more money, dollars are going to be worth less, so that money won’t buy you quite as much. But you’re going to be a lot better off owning productive assets over the next 50 years, than you will be owning pieces of paper.”
So, it is a bit more complicated than that. Because the dollar perhaps might be worth less during that time, there is value in owning things. You want to have more assets during this potentially complicated time is what it seems he is getting at, like owning a farm. Other things like the stock market is not the main concern, or even American businesses in this theoretical event, it is more those who rely on the American dollar without a lot of assets.
Only time will tell if Warren Buffet’s theory on what might happen in the event of another major world war that involves the United States.