'Bonds are not the place to be these days,' warns Warren Buffett

Fixed-income investors worldwide - whether pension funds, insurance companies or retirees - face a bleak future, says Berkshire Hathaway CEO

In his annual letter to investors, Warren Buffett bemoaned fixed income as an investment, saying that "bonds are not the place to be these days." The income from a 10-year U.S. Treasury bond fell 94% from a 15.8% yield in September 1981 to 0.93% at the end of 2020. Benchmark Treasury yields have jumped since but are still low by historic measures.

"Fixed-income investors worldwide - whether pension funds, insurance companies or retirees - face a bleak future," the letter said.

However, Buffett's enthusiasm for the future of America and his company Berkshire Hathaway Inc has not been dimmed by the coronavirus