Warren Buffett warns that debt investors face a “bleak future” in his annual letter to shareholders.

“Fixed-income investors worldwide – whether pension funds, insurance companies or retirees – face a bleak future,” Buffett wrote. “Competitors, for both regulatory and credit-rating reasons, must focus on bonds. And bonds are not the place to be these days.”

Buffet emphasized his firm’s ability to invest in an equity-heavy strategy and further cautioned that insurers should avoid “risky loans.”

Legeis Capital helps the insurance industry navigate the low interest environment by providing more efficient access to higher-returning assets.  Contact us to learn more.  

Buffett’s full letter is available here: https://berkshirehathaway.com/letters/2020ltr.pdf