No. of Recommendations: 1
" By Elizabeth O'Brien | Sunday, August 10
Fees have fallen across 401(k) plans as passively managed funds edge out pricier actively managed offerings. Yet a new development threatens this progress. This past week, President Trump signed an executive order opening the door to private assets in 401(k) plans. The move will democratize access to investments that had once been the purview of the wealthy and provide better returns and diversification for the nation’s savers, the administration said.
Yet it remains to be seen whether so-called alternative assets will boost returns enough to justify what are certain to be higher fees. The evidence suggests they won’t: A study last year found that pension funds, many of which invest in complex and illiquid private investments, don’t outperform simple passive investments over time.
The mechanics of the executive order haven't been worked out yet. And even once the Department of Labor issues guidance, 401(k)s are governed by companies that fear being sued by participants over their investment selections. These plan sponsors are likely to proceed with caution. Investors should do the same. "
Wouldn't it be great if Buffett agreed to a zoom call on this platform? Since the annual meeting has become almost worthless, we could submit our questions to Marc Hamburg for review, no got ya questions. While Buffett is still alert this year is the opportunity to do it.
Berkshire is a unique public security. When brk buys back a share of brk that buy figures to reduce the issued and outstanding of brkb shares forever. In 2011 I predicted buying ibm over brkb would have an opportunity cost of tens of billions of value long term to brk shareholders. Since 2011 how much stock-based compensation has been granted to ibm management? How many shares of brkb have been granted to brk management? Has ibm management been taking 2-4 % of the company annually in compensation regardless of stock or management performance? Has Chris Bloomstran pointed this out on many occasions? Thats why buying back a share of brk is very different than buying a share of any other public company, Berkshire is unique, period. Many old timers here will never get it, that's ok. I wonder IF Buffett gets it yet? Buying a share of any other public company has a material hurdle for brk, is that other share more dear, more valuable long term than brkb? Since 2000 Buffett never appreciated the value of buying back, precious brk, does he agree today?
Becky will never ask substantive questions; a zoom call right here will help to solve many riddles! Marc H, make this happen, thank you, hc.
