Index funds have exploded in popularity over the past three decades, and it is easy for investors to think that this simple form of investing is somehow second best. However, over twenty years ago, Warren Buffett already looked at index funds as one of the best opportunities for the average investor to buy equities.
“For the average investor who wants to own equities over a twenty or thirty year period, we think regular investment in some kind of very low-cost pool of money, which might well be an index fund, probably makes as much sense as anything,” Buffett said at the 1999 Berkshire Hathaway annual meeting. “But it’s important to keep the cost down,” he added.
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© 2023 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.