NEW YORK: Billionaire Warren Buffett prodded ordinary investors on Saturday to stay invested in US stocks, ignoring price swings, guidance from people with fancy credentials and the temptation to load up on bonds.

Buffett said it is a “terrible mistake” for investors with long-term horizons — among them, pension funds, college and endowments and savings-minded individuals — to measure their investment “risk” by their portfolio’s ratio of bonds to stocks.

The long-time bull on US companies and the economy issued his latest letter to Berkshire Hathaway Inc shareholders on Saturday.

Treasury yields have been rising since the start of the year, stemming from brewing inflationary pressures and massive bond supply to help fund US President Donald Trump’s tax overhaul.

Higher rates have kept US equity markets under selling pressure, as investors worry borrowing costs could hurt companies’ profitability.

Published in Dawn, February 25th, 2018