Collection: Warren Buffett - #306 'Buy Berkshire or Low Cost Index Fund?'

[Transcript]

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?

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.

(Source: https://buffett.cnbc.com/2004-berkshire-hathaway-annual-meeting/)

~ Please visit the site above for full video of Berkshire Hathaway Annual Meeting.

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[YAPSS Takeaway]

Indexing Investing tips - Don't time the market, just dollar cost average with a fairly regular sums.