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Should I follow Warren Buffett's 90/10 investing strategy?

Should I follow Warren Buffett's 90/10 investing strategy?

Finance
I'm in my early 50s, have more than $ 1 million in retirement savings and plan to retire around age 60. I've heard about Warren Buffett's strategy of keeping 90% of one's assets in stocks and 10% in bonds and like the idea of investing my savings that way to earn higher returns. I know my accounts would take a hit if stock prices fall, but I believe I could survive a market downturn. Do you think this is a good strategy for retirees and near retirees?—C.P. Anyone who's followed the strategy of putting 90% of their money in stocks and 10% in bonds that Warren Buffett mentioned in his 2013 letter to Berkshire Hathaway shareholders — would have done very well in recent years. After all, since that missive was released in March 2014, stocks have returned nearly 60%, while the broad taxable bo
Investing with borrowed money is tempting but a roll of the dice for most

Investing with borrowed money is tempting but a roll of the dice for most

Finance
In a 1991 speech at the University of Notre Dame, Warren Buffett offered a few of what are now regarded as some of his wisest words: "I've seen more people fail because of liquor and leverage — leverage being borrowed money."The Berkshire Hathaway CEO told the campus audience they could make a lot of money without other people's money if they were smart.Still, the temptation now to use historically low-interest money from mortgages, personal credit lines and 401(k) plans to invest in the stock market is great, especially as the Dow is reaching historic heights at more than 26,000 — a milestone unfathomable in 2009, during the Great Recession.Professional traders have used leveraged money from brokers and lenders to invest in exchange-traded funds and other stocks for decades, but this tact
UK railway pension fund investing millions in music

UK railway pension fund investing millions in music

Finance
Of the many alternative investments outside stocks and bonds that pension funds can buy, a few are putting retirement money into music copyrights.RPMI Railpen, the manager of one of the largest and oldest UK pension funds, is leading a $ 345 million investment in a fund rolled out Monday by Kobalt Capital, the subsidiary of music royalties collection and technology company Kobalt."With low expected returns from many traditional asset classes, we are prepared to allocate in alternative investments that can help us to pay members' pensions well into the future," Craig Heron, deputy investment director, RPMI Railpen, told CNBC this week in an email. Through the fund, Railpen buys music copyrights and receives royalties collected by Kobalt."This is an innovative investment opportunity that off...
Investing lessons from Warren Buffett's $9 billion Oncor 'stumble'

Investing lessons from Warren Buffett's $9 billion Oncor 'stumble'

Finance
Berkshire Hathaway recently made investment headlines with its agreement to purchase the power-transmission company Oncor for $ 9 billion in cash, a would-be coup for the legendary billionaire, as it would have chipped away at Berkshire's bloated cash balance (of nearly $ 100 billion).Disappointment, however, came in the form of Sempra Energy, which swooped in with an offer of $ 9.45 billion. This made headlines, some of which characterized the chain of events as a "stumble" by Buffett, even insinuating that the Oracle of Omaha might be losing his deal-making chops.A recent article in Fortune quotes an equity analyst who argues that Berkshire's loss of two large acquisition opportunities this year "calls into question the effectiveness of their gentleman's agreement acquisition strategy,"...
Op-Ed: Why this investing model makes sense for real estate in Asia

Op-Ed: Why this investing model makes sense for real estate in Asia

Finance
A decade ago, the real estate market opportunity in China consisted largely of risky speculative development deals because of a lack of availability of stock.Foreign investors seeking opportunistic returns from the first wave of China funds have been largely disappointed from a toxic combination of delays, cost escalation and implementation problems due to difficulties in enforcing basic contractual law. As a consequence, investor cynicism about China real estate runs high, and so sentiment on Chinese real estate is largely polarized between uber-bulls and perma-bears with not much in between.The reality on the ground today, however, is that the situation is more nuanced and much improved. Particularly in Beijing and Shanghai, occupational markets in the commercial market are buoyant and i...