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Wednesday, February 25, 2009

Ned Johnson: Big Government Not the Answer

Not every successful billionaire investor is in favor of Obamanomics (much higher spending, much higher taxes, much higher deficits). We rarely hear anything from Ned Johnson who prefers to remain quiet and behind the scenes (unlike other more left-wing financial gurus like Soros or Buffett). Johnson is largely responsible for making Fidelity what it is today - the world's largest asset manager.

In his letter to shareholders, Ned says:

We can only hope that the government's cure doesn't further sicken the patient. During the '30s, Congress -- with guidance from the president and the same good intentions -- shifted the country's cash flow away from productive businesses to government make-work projects, which most likely prolonged the Great Recession.

Fidelity Insight writer, Jim Lowell comments that this:

won't get him invited to (President) Obama's next black-tie

Is that such a bad thing?