At the one hundred year anniversary of Forbes magazine, the billionaire CEO of Berkshire Hathaway predicted that the Dow Jones Industrial Average will breach 1 million in the next century, according to a recent article in The Wall Street Journal.
That would require the index to grow by 3.9% annually (over the last 100 years, it has grown by 5.8% annually over the last 100 years). “The continued climb,” the article says, “is one reason Mr. Buffett cited for his optimism about America—a sentiment he has long imparted to his followers, particularly during turbulent times like the 2008 financial crisis.”
Hurricane Harvey and Geico
Buffett says that Hurricane Harvey hit insurance company Geico (the biggest car insurer in Florida) harder than Irma, according to a recent article in The Wall Street Journal.
According to Buffett, the massive flooding caused by Hurricane Harvey was much more destructive to cars than the winds during Irma, and he expects the insurer to report losses on approximately 50,000 cars.
Optimism for U.S. Economy
At the Forbes celebration, Buffett was adamant about his confidence in the U.S. market going forward. This according to a Reuters article. He said, “Whenever I hear people talk pessimistically about this country, I think they’re out of their mind.” The billionaire added, “Being short America has been a loser’s game. I predict to you it will continue to be a loser’s game.”