Warren Buffett Says Reaching for Yield Is ‘Stupid,’ But a Human Impulse
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Warren Buffett criticized companies including life insurers that respond to low interest rates by taking more risks, even as he acknowledged that the urge to seek better returns is normal.
“Reaching for yield is really stupid, but it’s very human,” Buffett said Monday in an interview on CNBC. “People are reaching for yield, there’s no question about that. And that’s stupid and it has consequences over time, but it’s very human.”