No. of Recommendations: 5
“Here's a fun chart ………
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We’ve all seen this before & yet we still have waaay to much time so we continue searching for that hidden magic formula leading to eternal outperformance!
It should be so easy to follow our Chairman’s advice recalled by Perplexity……….but what fun would that be…..& we do have all that extra free time, soooo…
“Warren Buffett has consistently advised his family—including his sister Bertie—to invest in a simple, low-cost way rather than attempting to pick winning stocks or follow pundit advice. His specific instruction is remarkably straightforward:
• Allocate 90% of funds to a very low-cost S&P 500 index fund (he often cites Vanguard as an example).
• Allocate the remaining 10% to short-term government bonds.
Buffett’s reasoning is that this simple approach will likely yield better long-term results than those achieved by most investors, even professionals using high-fee managers. He emphasizes the importance of keeping costs low, avoiding speculation, ignoring self-proclaimed market experts, and continually staying invested for the long haul. Buffett believes this method takes full advantage of the reliable long-term growth of the U.S. equities market, reduces risk of major errors, and protects against unnecessary losses due to high fees or bad timing.
Here is a direct quote from his instructions (originally written for his wife, but urged for other family members as well):
“Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard’s.) I believe the trust’s long-term results from this policy will be superior to those attained by most investors—whether pension funds, institutions, or individuals—who employ high-fee managers.”
Buffett stresses that ordinary investors—including his own family—will likely fare much better following this simple, disciplined approach than by chasing market predictions or complicated strategies.”
ciao
