Warren Buffett: bet on firms, not gold

Warren Buffett may have been widely criticised for his handling of the David Sokol affair, but he was as opinionated as ever during the recent annual general meeting of his investment firm Berkshire Hathaway.

He reiterated his bearish stance on gold: 'You can fondle it, you can polish it, you can stare at it. But it isn't going to do anything. I'd bet on a good producing business to outperform something that doesn't do anything.' He's also not crazy about betting on currencies, although he has been known in the past to have a punt on the dollar. 'Any currency-related investment is a bet on how the government will behave in future.'

As for stocks, Berkshire Hathaway owns 3% of Tesco, and there's no sign of that changing. But Buffett reckons Tesco needs to 'take a hard look' at the Fresh & Easy chain in the US. Berkshire's vice-chairman Charlie Munger says Tesco has a Fresh & Easy branch in his hometown, Pasadena in California. 'Tesco is God Almighty in England. But you come into Southern California and you have Trader Joe's and Costco, that's tough competition.'

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