I found these quotes by Warren Buffet in the BRK annual reports. So even he says low cost index funds are the right decision for most investors. And they will beat the results of most all money managers.
"Most investors, both institutional and individual, will find that the best way to own common stocks (shares¹) is through an index fund that charges minimal fees. Those following this path are sure to beat the net results (after fees and expenses) of the great majority of investment professionals.²"
1996 Berkshire Hathaway Annual Report
"Additionally, those index funds that are very low-cost (such as Vanguard’s) are investor-friendly by definition and are the best selection for most of those who wish to own equities."
2003 Berkshire Hathaway Annual Report Annual Report
"Over the 35 years, American business has delivered terrific results. It should therefore have been easy for investors to earn juicy returns: All they had to do was piggyback Corporate America in a diversified, low-expense way. An index fund that they never touched would have done the job. Instead many investors have had experiences ranging from mediocre to disastrous."
2004 Berkshire Hathaway Annual Report
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