Warren Buffet, one of the most successful investors in the 20th century, recently gave some financial advice to NBA superstar LeBron James.
“Through the rest of his career and beyond, in terms of earning power, [he should] just make monthly investments in the low-cost index fund,” Buffett told CNBC’s “Squawk Box” on Monday in response to a video question posed by James. “Somebody in his position ought to have a significant cash reserve.”
The Oracle of Omaha also said James should keep his investing strategy simple and invest more in US companies::
“Athletes generally tend to get promoted by people with restaurants and real estate,” he said. “Everybody’s got an idea for him and, usually, the simplest is the best.”
“Owning the United States at a decent average price bought over time, you really can’t go wrong with that,” he said.
“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.”
But, when James asked Buffett for some basketball advice, Buffett said jokingly:
“We went up for a jump ball one time and he got it, went the length of the court [and] dunked it just as I was starting to jump, so he does have that much to learn from me.”