What If You Invest Your 20 Years With The World’s Richest People From The Forbes List? | Healthy Mind — Think Big
While getting my daily dose of Warren Buffett, I stumbled across an interesting question: Someone asked the legendary investor at one of Berkshire Hathaway’s annual shareholder meetings. Something along the lines of: “As you and Bill Gates are two of the world’s richest people, you must know a lot about accumulating money. Would you suggest that I piggyback the two of you by buying shares in Microsoft and Berkshire Hathaway?” Buffett, in his usual tact, answered that “Well, I won’t give you any specific stock recommendations” but my own interest was piqued. Therefore, I decided to do a little bit of investigation to be able to answer the following question for you: “What if you invested with the world’s 5 richest people for 20 years?” Would this be a good strategy to outperform the general stock market? After seeing this post, you’ll be able to decide for yourself whether investing with the richest in the world could be a valid portfolio strategy. This is the Healthy Mind — Think Big, bringing you the best tips and tools for reaching financial freedom through stock market investing.
Let’s pretend that you, back in 2001, had $50,000in a Roth IRA retirement account which you wanted to invest to reach financial freedom as fast as possible. Don’t worry, by the way, if you do not have a Roth IRA, you can use a similar strategy anyways it just simplifies some of my calculations massively. Also, the amount of money is of course arbitrary.
Let’s also pretend that a friend of yours told you about the iShares Core S&P 500 ETF, which is an index fund tracking the S&P 500 stock market index. You considered this one of your investing options. Your friend emphasized how simple this strategy is — just take your $50,000, invest them in the iShares Core S&P 500 and wait for 20 years while letting compounding do its wonders. Also though, the magazine Forbes had just released its list of the richest people in the world, and, as you decided that these must be people who understand money well, you considered investing in their companies as your 2nd option.
This portfolio strategy is quite simple too. In March each year, Forbes released their “ForbesBillionaire’s List” which lists the richest people in the world. You will invest with the top 5 each year, by allocating 20% of your portfolio with each of these billionaires’ most important investment, аnd then change your holdings each year if needed.
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