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Buffet: Money in the mattress if banks charge for deposits
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Loading...With persistently low interest rates around the globe, billionaire investor Warren Buffett considers taking money out of banks, especially if negative interest rates result in customers being charged to park their money in accounts.
According to the hedge fund legend, if currency in a bank is worth less than currency in your hands it is better off putting it under your mattress than in a bank. Especially if you have lots of money in euros like Buffet.
The easy money policies from central banks around the world is a "fascinating movie to watch," Buffett said. He acknowledged, however, that the resulting low yield environment is a drag on Berkshire's earning power.
The Berkshire chairman and CEO said that they have close to $60 billion that's out invested at about a quarter of percent or less. One point on $60 billion is $600 million a year. If they were getting 3 or 4 percent on that money, that's a couple billion in the wallet.
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