Invest in Dividend Aristocrat Stocks, Not Gold

OG value investor Benjamin Graham, the intellectual force behind Warren Buffett, described an investor as one who sought to profit from the conditions of the company. By contrast, according to Graham, a speculator was one who hoped to gain from the conditions of the market. For speculators seeking to profit from buying gold, there also has to be the expectation that the "Greater Fool Theory" will prevail, too. This is due to virtually all of gold being used for speculative purposes.

There is very, very little investment value in gold as there is just not that much industrial demand for it. Gold will never create a new product, meet a consumer need, provide a service, patent a technology or do anything useful economically like a company such as Coca-Cola (NYSE: KO), Wal-Mart (NYSE: WMT) or Abbot Laboratories (NYSE: ABT). Summarizing his outlook on gold, The Oracle of Omaha stated that,"Gold has two significant shortcomings, being neither of much use nor procreative." By contrast, Dividend Aristocrat Stocks such as ExxonMobil, Coca Cola, Wal-Mart and Abbot Laboratories offer everything that gold does not for an investor such as Buffett.

Source: Motley Fool

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