January 27, 2015 Admin | January 27, 2015 What does Warren Buffet recommend his heirs do with their inheritance? Why should you care?
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He would tell them to invest with index funds. He does not tell people to invest the way that he does. There are no other Warren Buffets. He says to buy investments at the lowest costs that you can. You can get those low costs by buying index funds. People cant invest like he does, when he invests he buys the company for the most part and has a say in how they do business.
Mr. Buffet recommends that you buy index funds every month and don’t listen to financial advisers like him. Don’t read the financial pages every morning. Over the long term, businesses do fine and you can take advantage of that by getting on the whole market and staying there, not dancing in and out of it. Mr. Buffet also believes that giving is just as important with your wealth as preserving and growing it.
And why should I care?? I should care because if I want to be rich, I must learn to think and behave like a millionaire (or billionaire) rather than a middle or poor class person. This involves changing many ideals and habits we currently believe. When we think of inheritance, our internal greed only thinks about building that inheritance to an even higher level. If Mr. Buffet says that it is important to give in order to find happiness then by all means we should believe the guy. He has enough money to buy whatever he wants, and you don’t hear him talking about the latest iPod or whatever making him happy. You hear him talking about giving money away and showing unconditional love to people. That is what makes him and others happy. Learn to think differently and not just about growing the inheritance, but also what you will do with it to create your own happiness.
When he says get in an index fund and stay there, he does not mean for a short period. he is talking long term thinking. Looking at this a little deeper, he is fundamentally thinking about the long term. This is what rich people do, they think long term. Therefore, we should also start to think long term as well.
We should care when people like Warren Buffet speak, and listen and think about what they say. They have proven their success and we could learn a lot from them.
The path of least resistance is usually the best path to take. Mr. Buffet probably made a lot of bad decisions along the way and had many failures. He now has the hindsight to see that path of least resistance. He is sharing that information with us. Listening to him speak now and following what he says will allow us to bypass those failures that he made and create our own success much easier.
Index Index Index funds. Buffet would say start saving and buying index funds every month. They are cheap and think of it as a good way to know there’s a better future out there once you start developing those habits. He says it’s best to stay away from financial advisors like himself. Keep index funds, and never dance in and out.
Great answers, gentlemen. Let’s recap.
Here is what he stated very recently:My advice to the trustee couldn’t 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. (I suggest Vanguard’s.) I believe the trust’s long-term results from this policy will be superior to those attained by most investors — whether pension funds, institutions or individuals — who employ high-fee managers.
You can find the full article here:http://www.marketwatch.com/story/warren-buffett-to-heirs-put-my-estate-in-index-funds-2014-03-13.
Wealth helps you walk a path toward helping others. Warren Buffett is a wonderful illustration of that. When he speaks, listen carefully.