Warren Buffett Is Putting 90% Of His Wife’s Inheritance In One Investment And The Choice Is Really Smart

Warren Buffett, the billionaire, playboy, philanthropist behind Berkshire Hathaway, has said he’ll be putting 90% of the inheritance that’ll go to his wife in just one fund.

In a 2013 letter to shareholders, Buffett said, “One bequest provides that cash will be delivered to a trustee for my wife’s benefit,” he wrote. “My advice to the trustee could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund.”

And that’s it.

For Buffett, the S&P 500 was always the way to go, and over ten years later, he wasn’t wrong. The S&P 500 has effectively always been on the up since the great depression, basically Buffett’s whole life.

All You Can Eat Buffett

It’s this kind of advice that has earned Buffett the moniker ‘the Oracle of Omaha’ and delivered Berkshire gains of 4,384,748% from 1964 to 2023. Not bad.

But although Buffett might pick ‘the stocks that make ‘em pop’ himself, for the average investor, he recommends a simpler strategy like the S&P 500 all the way.

“I do not think the average person can pick stocks,” he said in a 2021 shareholders meeting, and for the layperson, it seems likely he’d recommend the simple investment fund strategy.

As for the last 10%, Buffett’s recommendation of government bonds is a sensible, low-risk strategy that offers high liquidity and is backed up by the government. It’s a smart move for a smaller portion of your assets. Buffett approved. 

Of course, at 95 years young, Buffett may have stepped down from Berkshire Hathaway, but no doubt will still be heavily involved in his finances.

His wife might have to wait a little while before she tries another strategy.

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Max Profit• D

Warren Buffett Is Putting 90% Of His Wife’s Inheritance In One Investment And The Choice Is Really Smart

Warren Buffett has said he’ll be putting 90% of the inheritance that’ll go to his wife...
Stonks
Max Profit• D

Warren Buffett Is Putting 90% Of His Wife’s Inheritance In One Investment And The Choice Is Really Smart

Warren Buffett has said he’ll be putting 90% of the inheritance that’ll go to his wife...
Stonks