torsdag 20 mars 2014

Invest your PPM pension money like Warren Buffett

Invest your PPM money as advised by Warren Buffett.

When your read Warren Buffett’s latest annual report 2013 from his investment company Berkshire Hathaway, you find his advice to non-professional investors. Like you and me.

Over time an index found with its low cost will give a superior return compared to those managed by professionals. Warren Buffett tells us to avoid funds with run by high-fee managers. Warren Buffett suggest you to allocate your savings into a low fee Standard & Poor US index fund (90%) and a Government short-term fund (10%). The lately is more like keeping cash.

Translated to funds in the PPM system an allocation could be like this;

Warren Buffett not just talks WHAT to buy; he also talks about WHEN to buy. You override market fluctuations and timing by investing frequently during a long-time span and not selling or take advice during down-turns. Just keep on an accumulate more to your existing holdings.

I am bit curios why Warren Buffett didn’t proposed investments in his own company; Berkshire Hathaway Inc. Maybe he finds the market value to high at this time.

I have adjusted my own PPM savings and increased the “cash”-proportion to 70% (from 41%) and put the rest in  markets; US, Europe, Sweden and Russia.


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