Warren Buffett's Will

The "Pennsylvania Mutual Fund"

Written by Outsider Club
Posted November 18, 2014 at 7:24PM

Warren Buffett revealed his will to a select group of shareholders and trustees. When he finally passes on, he wants his fortune divvied up into two simple positions.

When asked how his money should be managed after he shuffles off this mortal coil, Warren Buffett advocated one investment above all others:

“My advice to the trustee couldn’t be more simple: Put 10% of the cash in short-term government
bonds and 90% in [the Pennsylvania Mutual Fund]. I believe the trust’s long-term results from this policy will be superior to those attained by most investors — whether pension funds, institutions or individuals — who employ high-fee managers.”

He was so confident in his position in the Pennsylvania Mutual Fund that he even bet a million bucks on it...

Buffett made a bet that his little-known mutual fund would beat a slog-it-out, dogged, high-frequency investing style. He bet Protégé Partners — an asset management firm — that his one position would have better returns than a group of five hedge funds. This wasn’t just lip service; Buffett put a cool million where his mouth is.

So how’d he do?

Well, right now, Buffett’s little index fund is up over 40%, while Protégé’s five funds gained an estimated 12.5%. He even reiterated it in his shareholder’s letter from this year.

So how could the world's greatest investor stick with such a simple philosophy?

Find out exactly what Buffett is recommending to his trustees and how you can get in on the action, too.

Comments

The Birth of a 10-Year Uranium Bull