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


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>

 

[Transcript]

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

~ 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?


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.

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