Warren Buffett on Index Funds
The legendary investor says the last thing you should do is buy and sell stocks for quick profit.
“..the best way to own common stocks is through index funds... Those following this path are sure to beat the net results (after fees and expenses) delivered by the great majority of investment professionals. - Warren Buffett, Berkshire Hathaway Inc. 1996 Shareholder Letter
“Additionally, those index funds that are very low-cost … are the best selection for
“All [investors] 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.” - Warren Buffett, Berkshire Hathaway Inc. 2003 Shareholder Letter
"The active investors will have their returns diminished by a far greater percentage than will their inactive brethren. That means that the passive group – the “know-nothings” – must win." - Warren Buffett, Berkshire Hathaway Inc. 2007 Shareholder Letter