Lagos, Nigeria — Margo, 58, don build beta retirement fund well through investments wey follow Warren Buffett, di famous investor. But as she dey prepare for retirement, she dey think if e go fit make sense to explore other global markets.
During di latest episode of di Money Clinic podcast, Claer Barrett, wey be di FT’s consumer editor, invite Margo to discuss her investment strategy with di experts Simon Edelsten and Stuart Kirk. Dem gree analyze Buffett’s recent moves, di appeal of Japanese stocks, and how Margo’s seven-figure portfolio fit dey vulnerable to market corrections.
Margo don suffered hold of her portfolio based on di wisdom of Warren Buffett wey popular as di Sage of Omaha. “Wetin I like pass about di investment philosophy na di concept of searching for businesses wey get inherent value,” she talk. “Buffett and his team don dey good at finding those kind businesses.”
For di podcast, Margo dey reason if she go continue with her heavy investment in Berkshire Hathaway. “I don dey worried about my exposure to this investment,” she explain. “It look like di investment model don reach hin limit.”
Her portfolio na mostly equity funds, wey dey heavily weighted toward di US market. Margo get about 25% of her wealth inside Berkshire Hathaway, while 23% dey inside Investor AB, a Swedish investment firm wey dey operate like di ‘Baby Berkshire’. “I get dis investment to add European exposure to my portfolio,” she talk.
However, as she dey watch di current economic climate for di US, Margo begin dey feel uneasy. “I dey uncomfortable with dat high level of exposure to di US, especially as di market fit react erratically to changes for power and policy,” she add.
Claer Barrett ask di experts for di studio to give their insight on Margo’s investment position. Stuart Kirk commend Margo for di success wey she don achieve so far. “You no just make am by luck; you don do well lately,” he remark. Simon Edelsten echo di sentiment, speaking on how American equities don outperform for di past decades. “But now na time to consider sey your investment mix fit need change,” he conclude.
As di conversation continue, Margo ask di experts about balancing equities with safer options like bonds, especially with her retirement on di horizon. “E fit make sense to shift some of my wealth to bonds? At di same time, I wan balance my portfolio better to protect myself from major shocks,” she ask.
“E dey crucial to look outside di US for better opportunities when markets bi volatile,” Kirk suggest. “You fit diversify your investment to include global tracker funds wey dey tap into regions like Japan and Asia.”
As di podcast wrap up, Margo dey ready to engage her financial adviser to explore options for broadening her investment exposure. “I need to sharpen my understanding of dis investments and how I fit draw income when retirement go come,” she reflect.
