Video Link: https://youtu.be/KMKzy9zz37o
In this episode, Warren Buffett and Charlie Munger were asked for new investors buying stocks today, would they recommend to buy a low-cost S&P index fund or Berkshire Hathaway, and why?
In this episode, you’ll learn:
How to invest in index funds?
Index fund vs. stockbrokers' picking.
To check out all Collection: Warren Buffett <click here>
~ Please visit the site above for full video of Berkshire Hathaway Annual Meeting.
AUDIENCE MEMBER 00:00
Hello, gentleman. My name is Vivian Pine and I’m from Tarzana, California.
And my question is, for a new investor buying stocks today, would you recommend that they buy a low-cost S&P index fund or Berkshire Hathaway, and why?
WARREN BUFFETT 00:20
Well, we never recommend buying or selling Berkshire. But I would say that, among the various propositions offered you, a very low-cost index fund where you don’t put all your money in at one time.
I mean, if you accumulate a low-cost index fund over 10 years with fairly regular sums, I think you will probably do better than 90 percent of the people around you that take up investing at a similar time.
CHARLIE MUNGER 00:56
I would agree with that, totally. It’s awkward for us sitting here at these annual meetings where we have a sampling of some of the most honorable and skillful stockbrokers around who’ve done a wonderful job for their own clients and families. But the stockbroking fraternity, in toto, can be guaranteed to do so poorly that the index fund is a better option.
WARREN BUFFETT 01:28
We’ll go to number 1 again.