Warren Buffet is a very smart long-term stock market investor.
In one of the many articles that I have read about him, I remember a great quote about the professional basketball player LeBron James. Mr. Buffett calls it the “LeBron James analogy.”
“If you have LeBron James on your team, don’t take him out of the game just to make room for someone else. … It’s crazy to put money into your 20th choice rather than your first choice.”
I think that this is great advice for a Minnesota individual company 401(k) retirement plan participant.
Your menu of default mutual funds is often times overwhelming. You feel compelled to own several mutual fund options. Everything that you read and hear tells you to “diversify” and have a “balanced” company 401(k) retirement plan account.
Many times that is the exact opposite of how you should manage your company 401(k) retirement plan menu.
Not all your company 401(k) retirement plan menu options are worth your time and money. Many of those options are there in order to fill up the holes in the menu options.
Always remain invested in the best mutual fund options available to you. Do your homework. Make sure that the only mutual funds that you own are clearly the best mutual fund options on your company 401(k) retirement plan menu.
Don’t own several mutual funds just for the sake of diversification and balance.
You have at least one Lebron James mutual option available to you in your company 401(k) retirement plan account. Put the bulk of your stock market money there.
Ric Lager
Lager & Company, Inc.
