2020-06-14 — forbes.com
Trump's U. S. Department of Labor just opened the door for private equity wolves to sell the highest cost, highest risk, most secretive investments ever devised by Wall Street to 401k plan sponsors. 401k investors will be devoured like lambs to the slaughter.
The Chairman of the world's premier securities regulator evidently is unaware a decade-plus of private equity investing by so-called "well-managed" pensions has resulted in increasingly disappointing, not to mention inflated and unauditable performance results. Warren Buffett, arguably the world's most respected investor, recently escalated his criticism of private equity firms.
At last year's Berkshire Hathaway BRK.B annual meeting Buffett stated, "We have seen a number of proposals from private equity firms where the returns are not calculated in a manner that I would regard as honest... If I were running a pension fund, I would be very careful about what was being offered to me."
Chairman Clayton and DOL may think they know more about the risks and rewards of private equity investing than Buffett. They don't.
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