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Warren Buffett: Why Most People Should Invest In S&P 500 Index

Posted on January 30, 2022January 28, 2022 By Kelly Donner 45 Comments on Warren Buffett: Why Most People Should Invest In S&P 500 Index

Warren Buffett explains why he considers S&P 500 Index Fund to be the best investment for the majority of people. In fact, most people who are paid to deliver higher returns than the indexes (mutual fund managers, financial advisors etc.), can't outperform the stock market.

The question goes: “Why have you advised your wife to invest in index funds after your death rather than Berkshire Hathaway? I believe Munger has counseled his offspring to quote, ‘Not be so dumb as to sell.’”
From Berkshire Hathaway Annual Shareholders Meeting. (2017)

Warren E. Buffett is an American long-term investor, philanthropist, business tycoon, and the chairman and CEO of Berkshire Hathaway. He is considered one of the most successful investors in the world and has a net worth of over 100 billion dollars. Buffett was born in Omaha, Nebraska. He developed an interest in business and investing in his youth and made truly incredible stock market returns over his career.

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Warren Buffett: Why Most People Should Invest In S&P 500 Index

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Comments (45) on “Warren Buffett: Why Most People Should Invest In S&P 500 Index”

  1. Ssemombwe Andrew says:
    July 6, 2021 at 6:29 am

    🖐👍Present Teacher 👍🖐

  2. Ricaurte Mendoza says:
    September 14, 2021 at 2:03 am

    When you have at least a million (let alone billions), yes, no brainer, just shove it on SP500, but when you are trying to create wealth, then you better take more risk, unless you are starting at 18 years old to invest on the SP500. And by the way who wants to retire at 60-70? The goal is still be full of life and be able to retire and do whatever you want.

    1. DP says:
      November 27, 2021 at 8:09 am

      I have no intentions of retiring. Even with wealth I would be bored out of my mind. There is also plenty of scientific evidence of cognitive decline during retirement. It’s the old “Use it” (Brain🧠) or “Lose it”.

    2. TheProtocol48 says:
      November 27, 2021 at 2:42 pm

      Retired at 56, regret I waited so long.

    3. Blue_frs14 Finance Controller says:
      November 30, 2021 at 6:22 pm

      I would put my $ on tesla and apple 😎 tesla potentially could hit trillion dollar revenue within 10yrs

    4. Franz Liszt says:
      December 2, 2021 at 5:22 am

      Thanks

    5. Euan King says:
      December 2, 2021 at 4:06 pm

      I’m 21 how much do you think I should invest monthly in s&p to retire early

  3. TheProtocol48 says:
    November 27, 2021 at 2:40 pm

    When the student is ready the teacher appears.

  4. neuvocastezero 1 says:
    November 28, 2021 at 11:49 am

    The story about the 97 year old woman is pretty endearing.

  5. Frank E. says:
    November 30, 2021 at 5:09 am

    0:40 For someone who is not an investment professional (this advice is for)
    0:53 Best investment with less worry of any kind connected with
    1:14 If you hold the S&P there’s virtually no way you won’t have all the money you possibly could use
    1:39 It doesn’t make any difference whether your portfolio isn’t able to double or triple as long as you have enough to not have to worry
    3:48 It’s a policy (investing in S&P) that will get a good result
    4:14 The S&P algorithm is very hard to beat

    1. Travis Bishop says:
      January 8, 2022 at 8:26 pm

      i have no idea why there is a need to chapter a 5 minute long video

  6. bluegtturbo says:
    December 2, 2021 at 7:07 am

    Personally I think a far more common issue than running out of money is busting a gut to make yourself financially secure, then dying before you have a chance to enjoy it and letting your descendants fritter it away.

    1. Peter says:
      December 3, 2021 at 8:00 pm

      Far to many rich ppl in the graveyard.

    2. alex saurel says:
      January 5, 2022 at 10:24 am

      When I walk in the Montmartre cemetery in Paris and I see the very big Mausoleum I bet that it shall worth the money to spent the rest of eternity in the most beautiful graves of the place 🙂

  7. Vladimir Nikolov says:
    December 3, 2021 at 10:28 am

    I lost 250 dollars for the past two weeks thanks to S&P 500 Index in long position.

    1. Vincent says:
      December 3, 2021 at 12:27 pm

      its a long term thing wait dude. And I hope you didnt use any leverage because of the fees you have to pay with leverage trading

    2. Mr Wizard says:
      December 5, 2021 at 8:44 am

      …How? It’s gone up +50% in the past two years.
      >past two weeks

      Oh. Because you’re not long.

    3. SwiftR says:
      December 6, 2021 at 7:25 pm

      You should be chilling this week

  8. Ramnath Kumar says:
    December 3, 2021 at 8:22 pm

    After wealth creation , wealth preservation takes precedence. May not be right for everyone

    1. SYED MOIN says:
      December 27, 2021 at 7:42 am

      Right bro..

  9. DUCATIPUNK says:
    December 4, 2021 at 8:56 am

    Good Idea since they haven’t been able to beat S&P 500 by a mile in the last 10 years, Berkshire returned 260 percent vs. S&P500 return of 340 percent. 80 percent less TOTAL RETURN difference.

    1. Greyly says:
      December 5, 2021 at 6:29 am

      You should look up the difference between “percent” and “percentage point”. 1-(260/340) = 24% and not 80%.

    2. Steven O says:
      December 15, 2021 at 4:59 pm

      10 years? They invest for 30-40 years. 10 years is too short of a time period

  10. Joseph Kelleher says:
    December 4, 2021 at 7:21 pm

    I agree with Warren Buffett. The S&P 500 or the Total Stock Market Index is the way to go.

    1. Zeke Lifestyle says:
      December 8, 2021 at 4:23 pm

      I would actually dissagree with the total stock index part, why do you say that just curious?

    2. UrBoyDlo says:
      January 4, 2022 at 3:53 am

      Is the S&P still good for 2022

    3. Kactu ́s says:
      January 6, 2022 at 12:33 pm

      i’ve beaten the S&P 500 5 out 5 years now. I dont think its good to focus on one region. India and some other emerging countries will dominate the world 20-40 years time.

    4. JamesH says:
      January 21, 2022 at 10:08 am

      Down at the moment but will come back. It’s a slow burner

  11. Luis Nava says:
    December 7, 2021 at 5:34 pm

    I want to learn so bad about this. I deserve wealth just as much as the next guy.

    1. Hardcorefr3k says:
      December 8, 2021 at 12:51 am

      Do you want wealth or do you want to act rich? There’s a very different distinction between the two.

    2. cs says:
      December 9, 2021 at 7:06 pm

      Why do you think you deserve it?

    3. Jamie B says:
      December 11, 2021 at 4:13 pm

      You don’t deserve it

  12. james blace says:
    December 10, 2021 at 5:58 am

    How can he still talk that clear and fast that old? Impressive

    1. pr0sh0w says:
      December 11, 2021 at 11:01 am

      Bc he drinks coke on a dayly basis

    2. Base card Collector says:
      December 13, 2021 at 8:32 am

      Lol

    3. (͠≖ ͜ʖ͠≖) says:
      December 23, 2021 at 10:49 pm

      he read books

  13. Haroon Khan says:
    December 18, 2021 at 1:53 pm

    Does the s&p500 still return 10% during the stock market crash years?

    1. The High Ground says:
      December 19, 2021 at 5:44 am

      No. Its an average

  14. Pa rulu says:
    December 26, 2021 at 4:50 pm

    They got in line first and never left. Easy for them to say.

  15. john tucker says:
    January 7, 2022 at 3:07 pm

    Do as he does, not as he says…..Berkshire Hathaway has vastly beaten the S&P over his guidance …..but he does quite a lot of underhanded things that he never talks about …….

  16. Clifford Galapin says:
    January 24, 2022 at 10:41 am

    If you’re watching this video I’m sure you will learn a lot from warren buffett. 😇

  17. Virtual DarKness says:
    January 24, 2022 at 12:42 pm

    I wish I followed this advice 4 months ago 😅😅

  18. Stephen Cullum says:
    January 26, 2022 at 10:04 am

    I am retired now and pretty much came to the same conclusion as Mr. Buffett. That is a huge affirmation for me. In his field he is a genius. The goal is not to necessarily make the most money but to assure you have enough. And for almost all of us indexing is the way to go. You just have to have a reserve so you don’t sell in down markets.

  19. มด แดง says:
    January 27, 2022 at 9:00 am

    คือผมเป็นคนรักษาคำพูดมากไม่ว่ามันเป็นเรื่องส่วนตัวแต่ผมทำงานให้สีเขียวแต่ถ้าเรื่องผลประโยชน์ จะทำให้เขาเสียหายไม่ได้

  20. Boodhun Kanchan Devi says:
    January 28, 2022 at 3:41 am

    Hello everyone. I’m particularly interested in investment but i know nothing about stock ….is any video or website that could be helpful…especially explaining everything from a to z about stock. Would be very grateful. Thank you

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