Warren Buffett

Why Warren Buffett’s Prescription Will Not Work for Retirees

In a Fortune article titled “Why Stocks Beat Gold and Bonds,” Warren Buffett provides a glimpse of his upcoming shareholder letter.

While Buffett’s advice is perfect for investors who have a long-term perspective, anyone near or in retirement may want to think twice about acting on the prescription.

The core of Buffett’s advice is as follows:

Trees Grow

“Trees grow” is an adage that has stuck with me over the past several years.

In a post financial crisis interview, a successful investment manager was talking about his decision to load-up on Citigroup and a handful of other banks in early 2009 when the decision to do so was difficult to say the least.

Wally Weitz on the Failure of Imagination

Wally Weitz is a hugely successful and yet relatively low profile money manager.

His performance over a very long period of time credibly places him among the world’s top performing investors.

Like his Omaha neighbor Warren Buffett, Weitz is a deep value investor.  His fundamental investing criteria is the price of a security relative to its intrinsic value—the lower the price the better.

In the video below, Weitz speaks to Bloomberg about his biggest investment mistake.

Does Buy and Hold Now Require a Floor?

The Wall Street Journal recently published an interview (see the video below) with entrepreneur and Dallas Mavericks owner Mark Cuban.

The interview is interesting for a number of reasons.  Cuban talks about investing his own money and he offers some suggestions for regular, non high net worth investors. 

In a nutshell, Cuban strongly believes that the “buy and hold” approach to investing is a worthless strategy.

Wealth Preservation through Annuities, or Why Mike Tyson Should Have Purchased an Annuity

According to a 2009 article in Sports Illustrated, 78 percent of former NFL players have gone bankrupt or are under financial stress within two years of their retirement, and 60 percent of former NBA players are broke within five years of their retirement.

Buffett's Investment in Goldman Sachs

It's been a year since the market bottomed and the financial crisis presumably peaked.

There has been enough time for noted financial journalists such as Roger Lowenstein and Michael Lewis to write soon to be released books on the crisis.

Remember Warren Buffett's First Rule of Investing When Planning for Retirement

Warren Buffett's first rule of investing is "don't lose money."

His second rule is "don't forget rule number one."

In a rather odd whitepaper on retirement planning titled "Risk: How Much is Enough," the financial services firm UBS lays-out a road map of sorts for "moving forward" with retirement planning "in a changed world."

What seems clear is that the primary catalyst for the whitepaper is the fact that many financial advisors ignore or forget Buffett's first rule of investing when it comes to retirement planning.

Who Really Needs an Annuity?

Warren Buffett does not need to think about an annuity.  While Buffett’s age may qualify him for annuity consideration, his wealth is sufficient to fund any personal income needs that may arise.  Also, concerns such as longevity risk and sequence of returns risk are non-issues for him.

Gold on a Tear While Buffett Takes a Break

If gold prices and Warren Buffett’s investing activities are any indication, the near-term could prove difficult for investors.

Warren Buffett was selling more stocks than he was buying earlier this summer, and Berkshire Hathaway’s stock purchases fell to the lowest level in five years. 

Buffett biographer Alice Schroeder thinks that Buffett is actually starting to worry.

Buffett and Pictet Express Concerns About Inflation

Warren Buffett expressed his concerns about budget deficits and inflation risk in a recent New York Times op-ed piece.

Asset managers at Pictet and Cie which is Switzerland's largest private bank also have concerns about inflation in the United States, and they are backing this view with part of the $60 billion in fixed income assets that they manage.

Pictet is committed to periodic purchases of treasury inflation protected securities (TIPS) in light of their inflation thesis.

Find Financial Advisors

Click below to find financial advisors who provide annuities and retirement planning services. You may also add or edit a financial advisor profile.

Find Companies

Click below to find companies that provide products and services in the area of annuities and retirement planning. You may also add or edit a company listing.