Billionaire hedge fund manager Bill Ackman recommends investing in a broad equity index fund as the single best investment to buy and hold for the next decade, citing superior long-term growth potential compared to other asset classes. He specifically suggests funds like the Vanguard S&P 500 ETF or Vanguard Total Market ETF for their liquidity and diversification benefits. Ackman advises against bonds due to their historically lower returns and poor near-term outlook amid rising interest rates and persistent inflation.
Axe note: Ackman’s call for a decade-long buy-and-hold in US broad-market ETFs challenges local investors to rethink fixed income and hedge with the rand.