Warren Buffett’s advice to nonprofessional investors

Warren Buffett’s advice (1) to nonprofessional investors is to “own a cross-section of businesses that in aggregate are bound to do well. A low-cost S&P 500 index fund will achieve this goal.” Warren also advises nonprofessional investors to accumulate shares of the index fund over a long time period, never sell them when share prices are low, and minimize the costs of investing. There is no need to hire a professional investment advisor.

1.  Warren E. Buffett, Chairman of the Board. Letter to the shareholders of Berkshire Hathaway, Inc., 2013. Pages 19-20, 2/28/2014. http://www.berkshirehathaway.com/letters/letters.html

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: