On the opposite side of the spectrum, let’s talk about a low-risk investment. What should your minimal acceptable return be? Warren Buffett’s opinion is that no investment should yield a lower return than a federally issued bond. The reason he holds this opinion is because the Federal Reserve can simply print more money in order to fulfill its interest obligations; therefore, if a ten-year bond has a 3% return, the investor should never discount a ten-year investment decision lower than 3% annually.
