Buffett: Shares to return 19 per cent until 2016?

The Dow Jones stocks and shares index could deliver 19 per cent annual returns until the year 2016, according to superinvestor Warren Buffett.

According to Motely Fool, Mr Buffett has one simple rule: "Be fearful when others are greedy and be greedy when others are fearful."

Based on a prediction given in 1999 - when the Dow was at 11,194 - Motley Fool calculates that the overall return required for Mr Buffett's projection to come true would be the equivalent of a quadrupling of share values - or 19 per cent a year.

Recently, Mr Buffett - the world's richest man - admitted he is now buying US shares for the long-run, with his personal portfolio soon to be 100 per cent invested.

Those looking for a good political wager might want to bet on the next president being Barack Obama, the Democrat candidate who has received Mr Buffett's official endorsement.