Greg Abel Shares the Key to Building Lasting Wealth After 60

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At Berkshire Hathaway’s annual shareholder meeting, Greg Abel spoke publicly as CEO for the first time, offering comments that pointed to an investing approach built on balancing risk with reward.

Retirees can take note of that mindset.

During question-and-answer sessions with Berkshire shareholders, Abel said he intends to follow the investment path established by Warren Buffett, who built the conglomerate into a $1 trillion market giant over six decades as CEO.

“A lot of people have this urgency to act,” Abel said, adding that successful investors need to be selective about when and where they put capital to work. “You have to be disciplined and ready to say no.”

According to Adam Patti, CEO of VistaShares, Abel made it clear that Berkshire’s long-standing buy-and-hold philosophy will stay in place.

“He took great pains, over and over again, to emphasize that the investing discipline will remain,” Patti said.

That discipline, along with the willingness to say “no,” is reflected in Berkshire’s huge holdings of nearly $400 billion in U.S. Treasurys. The cash reserve gives the company room to maneuver without relying on borrowing, and Abel told shareholders, “We do not intend to be beholden to anyone.”

Avoiding debt, and the costs that come with it, has long been a hallmark of Buffett’s thinking as well.

“In general, we continue to have an aversion to debt, particularly the short-term kind,” Buffett wrote in a 1992 annual letter to Berkshire Hathaway shareholders.

That kind of financial independence allows a company to decide how best to use capital over time and adjust as circumstances change.

The same idea applies on a smaller scale to an individual 401(k), not just to a massive corporate cash pile. With people living longer and private-sector defined-benefit pensions now far less common, retirees need an investing strategy that helps prevent them from outliving their savings.

For retirees looking to protect wealth while still generating income, choosing dividend-paying investments and avoiding debt are sound guidelines.

In a hot market, saying “no” can feel like leaving money behind, but staying committed to a long-term plan, focusing on income, and steering clear of risks that could lead to debt can help create the flexibility needed for a more secure retirement.