When the third richest person in the world speaks, people listen. Some even pay millions of dollars just to have lunch with him.
Do you know who I'm referring to? He is the guy that is known as the “Oracle of Omaha”. The one that bought a struggling textile manufacturer in the mid-1960s and grew it to the fourth largest publicly held company in the world.
He is the legendary investor, Warren Buffett.
Don’t get me wrong, I greatly admire and respect Mr. Buffett. His value approach to investing has been shown to have persistent advantages over other investment styles. His famous $1,000,000 bet that an S&P 500 Index fund would beat a basket of carefully selected hedge funds over a 10 year period is the stuff of legend. But even legends occasionally are wrong.
Recently, in an interview on CNBC, he suggested that investors should be biased against investing outside of the US.
The Oracle is wrong.