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.