How Five Top Gurus Are Investing For RetirementVW Staff
Top pick: Nestlé
Bruce Greenwald would love to retire, he says. The problem is that nobody will let him. The famed value investing expert-in-residence at Columbia Business School’s Heilbrunn Center for Graham & Dodd Investing and a senior adviser to the $98 billion First Eagle Investment Management still manages a portfolio for private clients. And Columbia has persuaded him to work until he’s 73–even though he’ll begin receiving pension pay at age 70, before he actually stops working. Greenwald doesn’t need the money. His retirement assets, he says, are already “vastly in excess of anything I or my single child will ever need.” But he still enjoys the challenge.
Robotti & Co.
Top pick: Berkshire Hathaway
Bob Robotti has spent more than half his life running hedge funds. Today Robotti, 60, manages some $715 million between his 30-year-old firm, Robotti & Co., and the long-only Ravenswood Fund, which predates it and which he has managed since 1980. Retirement is nowhere in sight: He aims to live another half-century, à la his friend Irving Kahn, the famous centenarian investor. “He’s still running his company at 108, so that’s kind of my goal,” says Robotti.
Robotti’s small-cap fund has easily bested the market over the past 20 years, returning about 13% annually, after fees, compared with roughly 9% for the S&P 500. That’s given him a bit of a cushion, which he has poured wholeheartedly back into stocks. Some of the names in his retirement account are stocks he has owned for many years, like Pulse Seismic, a $200 million Canadian geological data company. Robotti now is chairman of the Pulse Seismic board. He also likes Subsea 7, a $7.1 billion oil services business based in London and listed on the Oslo stock exchange.