Finance1 min read

Private equity in your 401(k)? Heed Warren Buffett’s warning.

By · Via MarketWatch Top Stories · Published by Everything Blog

In short

A growing segment of the workforce is actively interested in diversifying their retirement portfolios with alternative investments. According to recent data, 52% of individuals with an employer-sponsored retirement plan would choose to allocate money into private assets if given the option. However, this trend emerges amid notable skepticism from seasoned market leaders, such as Warren Buffett, who continue to voice concerns regarding private equity.

Key points

  • Employee interest in accessing private equity options through employer plans is currently…: Employee interest in accessing private equity options through employer plans is currently reaching majority levels.
  • Major market investors continue to caution workers against embracing private equity in th…: Major market investors continue to caution workers against embracing private equity in their retirement accounts.
  • Companies face a clear tension between participant demand for alternatives and profession…: Companies face a clear tension between participant demand for alternatives and professional warnings about the asset class.

Sources checked by our analysis pipeline: 1

About 52% of people with a workplace retirement plan say they would invest in private assets if they were available in their company’s plan.

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