Here’s Buffett’s Billion-Dollar Advice to the Washington Post


The Wall Street Cheat Sheet has the article Here’s Buffett’s Billion-Dollar Advice to the Washington Post.  There is a lot more in the article that is worth reading to understand Warren’s advice, but here is a fact we all ought to consider.

Writing Graham in 1975, Buffett began by saying that, “There are two aspects of the pension cost problem upon which management can have significant impact: 1. maintaining rational control over pension plan promises to employees and 2. increasing investment returns on pension plan assets.” While this may seem intuitive to some, it has become clear that both the private and public sector are bad at managing pensions. Very, very bad.

Both private pension plans and Social Security ought to take note of what Buffet is saying.

Since at least 2005, I have been pushing for reforms that would heed Warren Buffet’s advice.

See previous posts Social Insecurity – Investment Rules Need Rethinking, Author’s Response to Social Insecurity – Investment Rules Need Rethinking, and Why a Pay-As-You-Go System (Social Security) is not like a Ponzi scheme.

Even before I started this blog in its current form, I was promoting this solution.

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