Home Breaking News Warren Buffett: Retirees ‘face a bleak future’ as mounted-earnings investments struggle

Warren Buffett: Retirees ‘face a bleak future’ as mounted-earnings investments struggle

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Warren Buffett: Retirees ‘face a bleak future’ as mounted-earnings investments struggle

, USA TODAY
Printed 2: 04 p.m. ET Feb. 27, 2021

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Warren Buffet spent a document $5.1 billion shopping back shares of his Berkshire Hathaway Inc. within the second quarter.

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The “Oracle of Omaha” doesn’t love retirees’ chances – at least these on mounted-earnings investments.

“Fastened-earnings investors worldwide – whether or not pension funds, insurance companies or retirees – face a bleak future,” Warren Buffett said in his annual letter to Berkshire Hathaway investors, a doc many gaze to for funding programs and guidance on the lengthy race of the economy.

That’s in part because the bond market is ailing as the economy gains momentum despite the COVID-19 pandemic. Buffett illustrious that in certain foreign international locations, including Germany and Japan, mounted-earnings investors are earning a negative return on sovereign debt investments.

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The implication is that stocks may be the appropriate mechanism to grow your retirement portfolio. Berkshire’s portfolio ranges widely from Geico to Apple to General Motors to Coca-Cola. 

The Omaha, Nebraska-based Berkshire chairman, who earned the nickname “Oracle of Omaha” for his a success stock picks, also defended his fresh strategy of repurchasing Berkshire shares. He said the plan would earn value for current Berkshire stockholders by limiting the pool of outstanding shares and thus increasing their proportional funding within the company.

Also in his letter, Buffett said he remains confident within the lengthy race of the nation because “despite some excessive interruptions, our nation’s economic development has been breathtaking.”

“Past that, we retain our constitutional aspiration of changing into ‘a more wonderful union,'” Buffett wrote. “Progress on that entrance has been sluggish, uneven and normally discouraging. We have, on the opposite hand, moved forward and will continue to build so. Our unwavering conclusion: Never bet against America.”

Be aware USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.

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Warren Buffett: Retirees ‘face a bleak future’ as mounted-earnings investments struggle