I think most of us are well aware who Warren Buffett is, probably the best investor of our generation.  Warren has preached a buy and hold strategy that has worked for him for years and years.  As simple as that may sound, his approach is much more sophisticated than that.  But when he does buy a stock he will hold it for years and years.

For those of you who have not followed him, Mr. Buffett is famous for his annual newsletters to shareholders of his holding company Berkshire Hathaway.  As long as you own a share of Berkshire (BRK.A), you can attend his annual meeting in Omaha, NE as well.  People travel thousands of miles to hear him speak.

According to Bloomberg, in this year’s letter Warren commented that, “ bonds are among the most of dangerous assets.”  He also commented that low interest rates and inflation should dissuade investors from buying them even though they have timely interest payments.  This may be tough pill to swallow for many investors who have seen bonds as the most consistent investment over the last 10 years.  This was partly due to the fact that rates slowly declined over the last decade.

How does this affect you?  Most investors become more conservative in their retirement years.  This is usually done by allocating more in to bonds.  I am not saying he will be right, but it is definitely worth considering.

Will he be right?