£2.4m ($3.12m) in cash to invest
50 year old United Kingdom based wants to invest cash savings
- Total Net worth £3.6m ($4.7m) consisting of:
- £1.2m ($1.5m) in 3 London properties (2 of which produce rental income)
- £2.4m ($3.12m) in cash
Annual Income from work and rent £100,000 ($130,000) is enough to live on so want to invest the cash for the long term to grow and compound.
Buffett suggests putting 90% in stocks in a low cost S&P500 tracker fund and forget about it. The market and compound growth will do the rest. Up to now, he’s been right.
Tempted to do just this as not interested in trying to outperform the market.
Although not invested at the time, have witnessed all stock market crashes since 1987 and the market comes back every time - so am in it for the very long term. Volatility along the way is of little concern.
The second option is to invest it all with Berkshire Hathaway. Why not?
The third option is to invest it in a standard portfolio of global stocks and bonds (favoured by most financial advisors) but which will unlikely match the return of stocks only.
Not sure what to do, especially given highly overvalued US stock markets (despite recent 10% correction).
Would be grateful for advice.