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Warren Buffett has long warned others against picking stocks, but admits he invests in a 'very irregular manner'


Published on 2025-05-04 16:41:03 -
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  • "Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund," Buffett wrote in 2013.

Warren Buffett, in his 2013 letter to Berkshire Hathaway shareholders, advised that most investors would be better off investing in a low-cost S&P 500 index fund rather than attempting to pick individual stocks or hire professional managers, a strategy he reiterated in his 2014 letter. He emphasized the difficulty of beating the market, noting that even professional investors often fail to outperform index funds over the long term. Buffett's own will stipulates that 90% of the cash left to his wife be invested in an S&P 500 index fund, underscoring his belief in the efficacy of this approach. He also challenged the fund industry's claims about the benefits of active management, pointing out that the majority of funds underperform the market, and those that do outperform often fail to sustain their performance. This advice stems from Buffett's observation that the market's efficiency makes it challenging for any investor, no matter how skilled, to consistently beat the S&P 500.

Read the Full Fortune Article at:
[ https://fortune.com/article/warren-buffett-investing-irregular-manner-sp500-index-fund-stock-picking/ ]