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Warren Buffett’s family investment plans

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Warren Buffett’s family investment plans


Warren Buffet has been for a number of years one of the richest people in the world  At one stage his wealth approached $60 billion and he and Bill Gates were close rivals in the richest in the world stakes. He made his money from being a very smart investor. He chose his investments and held onto them indefinitely.  In fact, he has a reputation for never selling a good investment. He started his business Berkshire Hathaway around 1970 after running various partnership investment businesses in the 1960’s.

Warren Buffett is well known as having a brilliant investment mind and he has invested in many under valued companies over time to become a leader in his field.

Although he is one of the wealthiest people in the world Warren Buffett is also known to be frugal at times. He still lives in the same house he purchased in 1957 and does not drive expensive sports cars.

The Pledge

In 2010 Warren Buffet announced he would be pledging 99% of his wealth to philanthropic funds either before or at his death. He also asked hundreds of rich Americans to pledge at least 50% of their wealth to charity. Much of his pledge has already helped the Bill and Melinda Gates Foundation fund health care in Third World countries, as well as other worthy causes.

Recently, Buffet announced where he was going to invest his remaining money to support his wife after his death. You would think the best investor of the last century would have a complicated plan to protect his family. Not so! He plans to have 10% invested in US government bonds and the remaining 90% in a low cost index fund which follows the 500 top companies in America – the S&P 500.

Low cost index funds

We can also now have access to a similar low cost fund that tracks the S&P 500. iShares   (aussie stock code IVV)  offer funds that track various indexes around the world and they are very easy to access. All you need to do is open a broker account (Google online brokers) or ask your friendly bank.

The iShares Core S&P500 EFT (IVV) is an easy way to gain access to American companies such as Apple, Exxon Mobil, Microsoft and even Berkshire Hathaway!

It’s a very easy and simple process and you don’t need to pay any gurus, bank or financial planners for the privilege.

Happy investing!


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