Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (18) | Ignore Thread Prev | Next
Author: Grahdodd One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 214655  
Subject: Re: Berkshire College Fund Date: 3/4/2013 11:49 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
>>>So assuming you didn't hit a landmine in the early to mid teens, I would likely be pretty heavily in fixed income by years 15 or 16 of that plan. But that would also reduce total return.

That's a very important point. But of course not all college expenses are paid up front. The cash flow is spread out over four years, so only part of the funds would have to be placed in something less volatile at age 15-16.<<<<<


Rational, think Buffett addressed this issue on CNBC.

Buffett observed that BRK has suffered 50% declines FOUR different times.

So about every decade, the stock price gets cut in HALF.

It is Highly Likely Berkshire will lose half it's market cap while saving from birth to freshman year...at some point. Maybe that's from $500,000 to $250,000. ..or double that...who knows?

Forewarned is forearmed. Especially when terminal value is critical.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (18) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement