Warren Buffet has been the best investor of the past few generations. Some attribute his performance to chance, while others to his skill. Either ways, for such a successful investor Warren does not recommend stock picking for other people. His advice to his wife is simple. After he dies, he wants her to invest 90% of her assets (yes 90%) in Index funds and keep the remainder as cash for everyday spending.
Yes, even for the GOAT of all investors his advice to his wife is simple – invest in Index funds, and keep your investment costs low. A view we can get behind wholeheartedly because it works.
Notice there is no property, or commodities in the asset allocation. And that’s not because as a billionaire’s wife she already has multiple houses. They don’t. The Buffet’s live in the only house Warren bought (in the 70’s). Tells you something about his view on real estate.
Also notice there is no trading at all. Re-balance periodically to keep investments at 90%, but that’s pretty much it. Basically invest and forget.
Follow this buy and hold strategy and you’ll outlive your capital, maintain a high level of purchasing power and perform better than all of your neighbors (Investing is a sport and we do keep score).
So, what are you going to do with your investments?
Visit www.kuvera.in to invest in “Direct Plans” of Mutual Funds and save BIG on commissions!!!
#MutualFundSahiHai, #KuveraSabseSahiHai
