Billionaire Warren Buffet isn’t shy about his investing advice and his disregard for Wall Street’s decision-making.
Key Details
- Speaking at the Berkshire Hathaway annual shareholders meeting recently, the 91-year-old investor Warren Buffet says that monkeys could do a better job investing than some Wall Street financial advisors.
- “Legendary investor Warren Buffett calls investing a ‘simple game’ that financial advisors have convinced the public is harder than it really is,” says CNBC.
- “Buffett slammed Wall Street financial advisors for catching the crumbs that fall off the table of capitalism.”
Why it’s important
Buffett, the CEO of Berkshire Hathaway, is one of the most successful investors in the United States with an estimated net worth of $98.7 billion, according to Forbes. When he speaks, the market listens.
Since at least 2017, Buffett has been recommending S&P 500 low-cost index funds as a solid way to invest and diversify stock.
“Buffett has long recommended that investors put their money in low-cost index funds, which hold every stock in an index, making them automatically diversified. The S&P 500, for example, includes big-name companies like Apple, Coca-Cola, and Amazon,” says CNBC.
“Consistently buy an S&P 500 low-cost index fund. Keep buying it through thick and thin, and especially through thin,” says Buffett.
Backing up a bit
Buffett previously criticized Wall Street in April for using the market as a gambling tool for speculating on the market, that speculators are able to make more money on this practice than on investing.
“Buffett bemoaned that large American companies have ‘become poker chips’ for market speculation. He cited the soaring use of call options, saying that brokers make more money from these bets than simple investing,” says CNBC.
“Warren Buffett has a long history of deriding investment bankers and their institutions-–saying that they encourage mergers and spinoffs to reap fees, rather than improve companies.”
Notable quote
“It’s amazing how hard people make what is a simple game. But of course, if they told everybody what a simple game it was, 90% of the income of the people that were speaking would disappear,” says Buffett.
