Buffett: ‘The best thing to do is buy 90% in an S&P 500 index fund’

Comments (63) on “Buffett: ‘The best thing to do is buy 90% in an S&P 500 index fund’”

1. I tell people this and I’ve been saying ever since I read his book in high school back in 2002. Every time someone talks to me about investing I say it’s easy. Vanguard or go home. My parents did this for my siblings and I. I’m 33. When I turn 39 it would have been 15 years, so I started late. I get a million in cash after tax, 50K a year after tax for life and all these health benefits that kick in for a caretaker later in life. I’m thinking of getting a couple more rentals and then Colombia or the Philippines or both hahaha. I’m so glad I stopped smoking to take that pee test back in my college days to get this index fund. Oh and I’m not supposed to smoke tobacco. Lol.

   1. So happy to hear that, but Vanguard isn’t the same company it was. Their expense ratios have gone up if you aren’t in a certain share class. There are other companies out there offering a less expensive ratio.

   2. @Judge Dredd

      And no one’s going to screw you. You signed the papers, that money is legally yours when it’s time. You were set up with a trust fund, it sounds.

   3. @Gabe Mendoza Hey man I truly hope so. Life has made me rather cynical as of late!

   4. @Leo How to be more Baked….By R.J Flemming.

   5. @Gabe Mendoza
      I disagree.
      Vanguard expense ration are usually lower that Spyder, or Ishares.
      VOO .03%
      SPY .09%
      Both are always neck and neck in growth and VOO has a slightly higher dividend yield.
      Not to say I ignore the others, I have two Spyder funds along with a few Vanguards.
      VGT rocks!

2. Let the people sell off BRK stock and he will buy back his own stock at dirt cheap price. Considering he has so much cash and his stock is so cheap right now compared to others

3. Buffets advice is subjective due to his age. It would be nonsense to tell a 20 year old to take 0 risk. Moreover, there are so many opportunities outside the USA.

   1. U.S. has the largest economy in the world. It’s foolish to bet against it.

   2. US market is the best.

   3. The market has changed, this is a global world and America is no longer leading the way. Too many scams going on in our market. These men are 99, and they’re discussing their portfolios they’ve had over 70 years. Life has changed. Beside that Buffett dude gets billionaires to give them half their wealth, he should be sitting pretty.

   4. @JP 72 Right on! Btw as soon as I read your comment I knew you know what you’re talking about, and when I checked your subscriptions, you sure are part of the Ben Felix gang 🙂

   5. @Abdullah best investing channel on YouTube!

4. Guys note that if you are operating with a small capital you can definitely beat the market. Here the comparison is market vs berkshire with berkshire being limited by its size

   1. @Steffen Bull personal Very hard! 🙂 Warren did a masterpiece

   2. Russell 2000 beats s&p 500

   3. That’s what they said about Peter lynch’s fund when it became larger. The skeptics always get proved wrong. But you never know.

   4. @jaren Garnett not on a risk-adjusted basis. Meaning that it outperformed the S&P 500 only because it had a higher beta, the same risk that underpins the S&P 500

   5. @Abdullah saying that an index is more risky is a different statement than saying whether an index outperformed. If you acknowledge that the index outperformed then you acknowledge that my statement is true.

      Risk is another subject altogether. Higher risk does not guarantee out performance, so your explanation is non-sequitor

5. Great meeting!! I salute Mr. Buffett who at 90 yrs old is mentally sharp and physically energetic!!! Charlie was also very impressive at 97!!! 😎

   1. Biden wishes he was that sharp 40 years ago.

   2. Both of them are quite simply head and shoulders far smarter and wiser than the entire global financial industry combined

   3. @Mercenary agree!!

   4. @Past Expiry I wish I was that sharp at any age!!! 😂😂😂

   5. @Pass X I find him to be in top shape mentally. He is as sharp and charismatic as ever before. I have watched many shareholder meetings and interviews and cannot notice any decline in his mental abilities!! 😎

6. As the saying goes… “If you can’t beat it, JOIN IT!”

   1. Yup thoughts from a Millenial investor Im from Generation X your funny

   2. @Paid to Drive To be fair, I’m almost X. I’m from January 15th 1981. X is until 1980, so the difference is 16 days 😋

   3. @Paid to Drive He’s right tho..

7. Very often I agree with Charlie Munger

8. I do like the S&P500 etf’s… & I think if you’d bought into Berkshire a while ago you’d have done really well. But you also can’t argue against the fact that Berkshire is a cash generating machine… and they have to pay out or buy back shares at some point.
   The foundation they built is incredible!
   Just FYI… but owning an S&P index will include some % of BH anyway 🙂

   1. Will Berkshire do as well after Buffett?

   2. Ftse all World is broader than Sp500

   3. @L A I doubt it. Even now they can’t beat the S&P.

   4. @82zerox but the percentages are different ..Hold both

9. Brk is listed in the s&p 500— you are investing in the company either way

   1. Berk is typically ~1.5% of an S&P index fund, so a pretty substantial difference.

   2. @Gunnar less or more?

10. 2021, the year Berkshire Hathaway employees apply for jobs at McDonalds.

    1. That will not happen, while Warren is at the helm …

    2. @L A Of course i was being literal…

11. Pragmatic. Fair. Thanks.

12. Too many of us are chasing a higher return. Which is a fools game

    1. I don’t know man…..look at the trowe funds…..trlgx for ex

    2. Yep. Even if you strike lightning once, it does not mean you will strike it again.

13. if opportunity doesn’t knock, build one for yourself. A motivational speaker ones told me

    1. i realize it is pretty randomly asking but do anybody know of a good website to watch new tv shows online ?

    2. @Sonny Brecken Try flixzone. Just google for it =)

    3. @Kasen Ahmir yup, been using flixzone for since march myself 😀

    4. @Kasen Ahmir thanks, I went there and it seems like they got a lot of movies there 😀 I really appreciate it!!

    5. @Sonny Brecken No problem 😀

14. Just checked… Past 40 years s&p500 + 3000% , nasdaq composite + 6000% 🏆Berkshire Hathaway 🏆 +6000% past 30 years

15. Buy 90% SPX500, GREAT. BUT And buy treasury bills? egy And what ?

16. *Rich people plays the money game to win.* *Poor people plays the money to not lose.* *The goal of the truly rich people is to have massive wealth and the poor sees a surplus as an opportunity for consumption instead of investing it.* *change your mindset and do what the rich does,* *which is investing,* *investing and investing.*

    1. All scammers

    2. Whole thread is scammers, report them all, they are trying to steal your money

    3. @Paterson Davis So be sure buy some all equity ETF’S as well as S&P 500 ETF’S and you won’t lose

    4. @Jonny Vape Don’t invest in Bitcoin for one..Get on an S&p 500 etf and by some bank stock that pays dividends..Re invest the dividends Everytime they come it

    5. What financial video would be complete without the requisite fake thread by Indian scammers? Folks, ignore these people.

17. 1:16 Buffett: “I’ve never recommended Berkshire to anybody.”
    Munger: Eyebrows go up.
    Me: I like S&P 500 Index as the default strategy.

18. Interesting to see them give two different answers. I think Buffet is smarter with the answer. He understands that the magic in his company is the founders and there is 0 proof that without them it will do as well. Investing in the index is a lot safer of an investment.

19. Massive respect to both of them. I’m always laughing when Buffett drinks his cherry coke lol

20. I wholly agree with the ‘Own a low cost SP500 fund’ my favorite is VOO as its expense ratio is one third of SPY and had a slightly higher dividend yield, but look at the top holdings in these funds.
    Apple and Microsoft are the top two.
    Compare either one with VOO, SPY, etc and their worst years are about the same as VOO, SPY best years.
    AAPL and MSFT arent going anywhere but up.

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