Warren Buffett Tells Lebron James How To Invest His Money
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JAMES: "Well, actually, I have two questions that I'd like to ask Warren Buffett. My first question would be -- yeah, what should I invest in next? Can I have some tips. And, my second question would be: I'm not doing too well with the profession I'm in right now. Can you teach me how to play a little basketball, please? Those would be my two questions to Warren Buffett."
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BUFFETT: "(Laughs)"
QUICK: "Warren."
BUFFETT: "First one was what he should invest in now?"
QUICK: "Right."
BUFFETT: "I think somebody like LeBron -- and we talked about it -- but I think --"
QUICK: "You and LeBron have talked about it?"
BUFFETT: "Occasionally. I think actually through the rest of hs career and beyond in terms of earning power then, just making monthly investments in the low-cost index fund makes a lot of sense. I think that somebody in his position ought to have a significant cash reserve at whatever it makes him comfortable. And then owning a piece of America, diverse by piece, bought over time, held for thirty or forty years, it's bound to do well. And the income will go up over years and there's really nothing to worry about."
QUICK: "You think he's listened to you on that?"
BUFFETT: "You will have to ask him." (Laughter)
QUICK: "And the second question."
BUFFETT: "I'd say this. Athletes generally tend to get promoted by people with restaurants and real estate. I mean, everybody's got an idea for him and, usually, the simplest is the best."
QUICK: "What does that mean?"
BUFFETT: "I mean something like owning the United States at a decent average price bought over time, you really can't go wrong with that. Somebody else might end doing better with this or that, but somebody will got worse with this or that too. Their expertise is making a lot of money doing something they do extremely well, but they aren't generally going to be able to take the time to become a professional investor too, so it's the same advise I give to 99 percent to people ... And nobody has ever followed that and got other than a decent result. Nobody."
