Why Warren Buffett Recommends You Invest in Index Funds
Known as ”The Oracle of Omaha"...
The 3rd richest man in the world, with a net worth of over $87 billion, all generated from stock market investing...
Considered the greatest investor of all time...
… and a fellow Index Tracker lover like me.
His name is Warren Buffet and back in 2008, he made an extraordinary $1 million bet!
He made a bet that an index tracker fund, which follows the stock market up and down like a robot, would return more money for investors in a decade than highly paid fund managers would.
He was so confident he even let the investment firm he made the bet with, Protege Partners, choose the team who would try to beat him.
And now, as the ten years draws to a close he is on the verge of a big win!
His index tracker fund has risen by more than 85%, while the five funds trying to beat him have returned a measly 22%.
So, should you follow his advice and put your faith in a robot fund?
I believe you should and to help you do so I’m giving you a book on how to do exactly that for FREE!
Go here to get your free copy of the book “Expand Your Dough - How To Use Index Trackers To Create Your Wealth”
Index tracker funds are a form of passive investing.
It’s only passive because robots make the investment choices and not humans!
Index tracker funds hold every stock in whatever stock market index it is tracking.
For example - if it is tracking an index such as the S&P 500 index, it will hold shares in all the companies listed in that index including big-name companies such as Apple, Microsoft, Facebook and Google.
Index Tracker investing makes sense for two reasons: Index funds are inexpensive and aren't tied to the success of one single entity.
"The trick is not to pick the right company," Buffett says. "The trick is to essentially buy all the big companies in an index through an index tracker fund and to do it consistently."
Individual stocks also cost more to manage, which means advisors take a larger chunk of your earnings.
"Costs really matter in investments," Buffett says. "If returns are going to be 7% or 8% and you're paying 1% in fees, that makes an enormous difference in how much money you're going to have in retirement."
That makes sense for two reasons: Index funds are inexpensive and aren't tied to the success of one single entity.
"The trick is not to pick the right company," Buffett says. "The trick is to essentially buy all the big companies through the S&P 500 and to do it consistently."
Individual stocks also cost more to manage, which means advisors take a larger chunk of your earnings.
"Costs really matter in investments," Buffett says. "If returns are going to be 7 or 8 percent and you're paying 1 percent for fees, that makes an enormous difference in how much money you're going to have in retirement."
Buffett's not the only super star investor and business person to sing the praises of index funds.
Mark Cuban gave the thumbs up to Index trackers too.
The self-made billionaire said, “If you don't know too much about markets, the best way to invest your money right now is to put it in a cheap index tracker fund.
Tony Robbins also agrees with me.
In his book “Money he writes…
"Index funds take a 'passive' approach that eliminates almost all trading activity," and goes on to explain that index tracker funds eliminate the human error — and therefore the risk — that comes from trying to pick stocks individually.
"When you own an index fund, you're also protected against all the downright dumb, mildly misguided or merely unlucky decisions that active fund managers are liable to make."
I first learned about Index Tracker funds in the early 2000’s and I am grateful every day that I did. They formed the core of my own financial freedom and still do.
Unfortunately, many people still don’t know about them or how to invest in them successfully which is why I decided to write this book specifically to get you informed and investing in these awesome investments.
In Expand Your Dough I share with you all you need to know to get you started investing safely, securely and successfully using index trackers - also known as passive investing.
In it you’ll learn all about…
- Index Trackers - what they are, why they are the preferred investment tool used by successful investors and why your financial advisor most probably won’t tell you about them;
- Cost Averaging and why regular investing and creating a rhythm is the way to significantly beat the market;
- How to automate your stock market investing so you spend your time living and not staring at a computer screen PLUS why that will give you better returns
- AND sooooooo much more
I hope it gives you the knowledge, clarity and tools to create your own financial freedom even quicker than I did.
>>>Get your FREE copy of Expand your Dough here <<<
