Public Pensions for Morons - Who gets paid off?

Simple questions. The best bet in the stock market for the past 40 to 50 years has been Berkshire Hathaway. It is the company that Warren Buffet controls. If you don't know who he is, you need to look him up. Mr. Buffet has averaged an increase of about 25% a year for the past 50 or so years. Public pensions assume a return of about 8% a year, anything beyond that means that the pensions are considered overfunded. During the past decade, public pensions were overfunded, a change in the accounting rules now makes them appear to be underfunded; but, in reality the Governmenal Finance Officers Association (GFOA) says that public pensions are adequately funded and not in trouble, though, the media would have you believe differently.

When you hire government employees, they join a pension plan, because of this, they are given less in Social Security even if they have had a career in private industry and have contributed to Social Security. Public pensions have not overwhelming purchased stock in Berkshire Hathaway. In fact, they have hired investment consultants known as "placement agents". Many of these placement agents have been paid tens of millions of dollars to suggest companies to public pension plans to invest it. They are some of the most expensive match makers in the world. Investigate Calpers and Elliott Broidy or Villalobos. Heck, check out the New York State pension and their Comptroller who was found guilty of taking bribes from Mr. Broidy.

Here is the real question, why don't residents demand that public pensions invest in the best investments, such as Berkshire Hathaway? If public pensions had invested in Berkshire Hathaway for the past 40 years, there would be no issue about public pension costs today. So where did that money go? Ask your city, county or state where the public pension money was invested and what return they got. Public employees were given salary increases in exchange for their pension funds being used to fund pet projects by politicians.

Now, if anyone actually cares where their tax dollars go, they will search for the CIM Group. By the way, I am not a member of Calpers nor of the New York State pension plan.

reply to post by AQuestion


Thank you whoever flagged this.

Originally posted by AQuestion
Here is the real question, why don't residents demand that public pensions invest in the best investments, such as Berkshire Hathaway?

Because stocks are volatile and no reliable accountant will suggest you move your pension funds into a single stock. That's why so many private pension funds and IRA's lost money during the Great Recession.

Originally posted by links234

Originally posted by AQuestion
Here is the real question, why don't residents demand that public pensions invest in the best investments, such as Berkshire Hathaway?

Because stocks are volatile and no reliable accountant will suggest you move your pension funds into a single stock. That's why so many private pension funds and IRA's lost money during the Great Recession.

Dear links234,

LOL. Really, stocks are volatile. Not for Berkshire Hathaway, a 25% increase year over year for over 40 years, isn't that a better bet than individual bets when BH is already diversified by the man they call the Oracle of Omaha?

reply to post by AQuestion


Then do it, if it not volatile. But be sure to come back in 3 years to tell of of your success.

Originally posted by randomtangentsrme
reply to post by AQuestion

 

Then do it, if it not volatile. But be sure to come back in 3 years to tell of of your success.

Dear randomtangentsrme,

So over 40 years of proof that Buffet is doing what is the right thing is not enough? Look at the hundreds of millions that were lost by Calpers and other public pensions and explain to me again how investing in Berkshire Hathaway would have made less sense.