Warren Buffett: In 100 years, the Dow will be over 1 million

[Yonnie3]

Step aside, pessimists. The only way is up for U.S. stocks.

That’s according to one of the most closely followed billionaire investors around — Warren Buffett, who was speaking at an event in New York Tuesday evening to mark the 100th anniversary of Forbes magazine.

...

Doubling, even tripling on that belief that U.S. stocks are the best long-term bet around, he tossed in a fairly bullish call. Buffett said he expects the Dow Jones Industrial Average to be ”over 1 million” in 100 years. The index was at 81 around 100 years ago, he said, so that isn't such a far-fetched notion.

http://www.marketwatch.com/story/warren-buffett-in-100-years-the-dow-will-be-over-1-million-2017-09-20

I note, with cynicism, that no mention of the dollar's worth in 100 years is made.

[Eliot Rosewater]

1. Corporations are like guns, destructive and unnecessary.

Sure they can do good, but the bad always will outweigh the good.

Corporate model by definition is anti human being.

Having said that, I am NOT a progressive. HELL NO

and in the short term I will embrace any and all corporations that help defeat the Nazis

[democratisphere]

2. In 100 years homo sapiens will be extinct.

[Zoonart]

4. The NY Stock Exchange will be underwater.

[democratisphere]

7. Invest in scuba and snorkeling equipment companies.

[unblock]

9. they'll do away with in-person trading before that happens

[ADX]

6. You beat me to it...

[democratisphere]

8. Great minds...........!

[unblock]

3. that's less than 3.9% annual return, pretty conservative estimate, actually.

the optimistic part, of course, is that we'll still be here in 100 years, that our economy won't be devastated by such things as climate change (sure to have a major impact over the next 100 years), nuclear war (bound to happen eventually), and/or world-wide epidemic (we're overdue and bugs are becoming more resistant). or at least, there will be enough growth otherwise to rebound from such catastrophes.

as to your cynical inflation point, it averaged 3.2% annually over the last 100 years, so that wipes out most of the gains.

on the other hand, just looking at the dow itself ignores dividends and distributions you get along the way....

[Yonnie3]

5. Good points

I suspect that the components of the Dow index in 100 years will different significantly from today's components.

My EWAG is that the inflation adjusted yield in an average year would be on the order of 2~3% including dividends in this scenario.

I would be more inclined to invest in a global (ex US) index and a total US index than a DOW index, if I were to invest for that 100 year goal. Of course, that is an academic question, I doubt I'll be around in 20 years.

[Warpy]

10. The whole economy will hgave morphed into something else by then

They don't seem to realize this is the end game of capitalism. Either everything gets reshuffled, wealth redistributed downward to begin a new game, or a revolution occurs and his class gets lined up and shot. The former will work. The latter will not.