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Warren Buffett: Buying And Holding Index Funds Has Worked | CNBC

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Berkshire Hathaway CEO Warren Buffett speaks to CNBC's Becky Quick about this year's shareholder meeting and his best long-term investing tip. For more of Warren Buffett's wit and wisdom visit https://Buffett.CNBC.com » Subscribe to CNBC: http://cnb.cx/SubscribeCNBC About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Find CNBC News on Facebook: http://cnb.cx/LikeCNBC Follow CNBC News on Twitter: http://cnb.cx/FollowCNBC Follow CNBC News on Google+: http://cnb.cx/PlusCNBC Follow CNBC News on Instagram: http://cnb.cx/InstagramCNBC Warren Buffett: Buying And Holding Index Funds Has Worked | CNBC
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Text Comments (306)
JoePonji (17 days ago)
Compounding dividend is fantastic... - Berkshire does not pay dividends
Travis Williams (21 days ago)
Love investing in funds. I have vanguard ETFs and love them. I have several ETFs I recommend that cover most aspects of the market. Great video
Travis Williams (15 days ago)
Alexandre Silva no problem! I have a Beginners video covering easy ways to invest. ETFs are funds that cover certain sectors. For instance one etf may cover technology companies. Another might cover dividend paying companies. If you buy several different ETFs, you can diversify quickly over a broad area. It’s really easy and in some cases doesn’t take that much money
Alexandre Silva (15 days ago)
Can you explain to me that
Rob Roy (1 month ago)
Just focus on accumulating $100,000. Once you have that amount invested, it will start to snowball and you can sit back with some popcorn and watch it grow.
kirisutegomen12 (1 day ago)
@itonner231 really? You are a genius
itonner231 (20 days ago)
Rob Roy He meant $10MM, which would be 10 million dollars. MM stands for one million (one thousand, thousand). M stands for mille, or thousand, in Latin.
Felipe Ornelas (21 days ago)
@Dave 1977 Why would you are about the price of college? You're already wealthy you don't need it for yourself. I certainly will not want to hand for free college to my children. And besides, college is getting more and more useless as time goes by. And you can always move here to Brazil or maybe some other country, the quality of health care has a much better cost x benefit than in America, unless your problem is a very specific disease and you would want to try experimental treatment, which is more easily found with the American Universities. But don't believe that is a likely situation you be in once your old, old people generally deal with old problems.
Rob Roy (29 days ago)
@Dave 1977 So you have $10 bucks? Well of course you're not ready for retirement. Also, are you planning to go back to college before you retire?
Dave 1977 (29 days ago)
Rob Roy that’s my networth in US dollars at age 40. I am not bragging. I am saying that even with that much I panic about retirement when I hear the crazy cost of health care and college tuition sky rocketing everyday.
Albert Einstein (1 month ago)
I’d do anything to .... that lady.
Dr . A . Rosenberg (1 month ago)
You can't take your money to the grave ! Spend it now and be happy !
Hulk Rise (1 month ago)
She is hot
Aaron Ramsden (1 month ago)
God damn I love this guy
1mmafrka (1 month ago)
WTF! He used to say that investing in a pool of companies was for ignorant fools and now he’s saying that index funds are a good investment.
Mr. R A M P A (1 month ago)
Two rich faces :)
Tafari king (2 months ago)
Invest today 10 years later.. : )
Jiashen Huang (2 months ago)
yeah in order to use compounding I need to work harder to make more money
Vincente Rey (2 months ago)
He said also said he earned most of his money from life insurance. I work exactly in the wealthiest industry and can potentially connect you with a director and set up a Skype or any sort of video chat interview to see if you qualify for those that are interested
João Mendonça (2 months ago)
Brazil bonds work better
P puh6tfrz (2 months ago)
Can anyone recommend any books or films that REALLY go into detail on Buffett's time at Berkshire Hathaway? I've seen a couple of documentaries on YouTube but they didn't go into the detail I'm looking for. I'd love to find something that goes through Buffett's leadership chronologically very specifically and outlines major investments with all the figures etc. Does anyone have suggestions? Thanks.
P puh6tfrz (3 days ago)
@Nicholas Stratton Yes, I got the book a few weeks ago, thanks. The stuff that focusses on Berkshire Hathaway is interesting although I'm not interested in his wife's social life so I skip past that!
Nicholas Stratton (4 days ago)
P puh6tfrz try reading the snowball effect: warren buffet. It’s a good book I also recommend reading one up on wall street it talks about a lot of the same concepts that warren uses. Warren’s investment strategy however was based on The Intelligent Investor by Benjamin Graham.
P puh6tfrz (29 days ago)
@Gin coopland Thanks but I didn't say I was looking for investment advice.
Gin coopland (29 days ago)
Well if your looking for investment advice you can literly go and see berkshire's stock holdings they publish it i believe quarterly? most of the stocks in there are great and many funds just buy and hold what berkshire has.
P puh6tfrz (2 months ago)
I love the way Buffett chuckles to himself at 0:17.
Corn Fed (2 months ago)
Preach!
drott150 (2 months ago)
America does and has worked. But America is changing very rapidly into something it has never been before. It's very rapidly being inundated with 3rd world people who will be served by the democrat socialist party. Those 3rd worlders will vote for socialism just like they do in their own countries. That's why the democrats are so desperate to get as many into the country as possible. And the ability of the 3rd world population to vote in our local and general elections is only one democrat president and congress away (who will grant them en masse blanket amnesty and citizenship). It's coming and very soon. And once it happens, there will never again be a republican president or congress. Our country will be "fundamentally transformed" into a very large 3rd world country. The stock markets in 3rd world countries - when they even exist - do not perform well in comparison to first world countries.
Tien Doan (2 months ago)
But... experts on reddit told me that Warren cheated
Brandon Dyson (3 months ago)
Buy and Hold!!! This is why I never day traded!!
bitTorrenter (3 months ago)
2:18 - 11.72% CAGR over 77 years.
Somluck (3 months ago)
Indexed funds is how a number of countries fund part of its retirement funding for workers. It is part of the salary package. After 45 years the indexed fund pays the employee a pension. The index fund usually holds a spread of assets, equity in the domestic market, equity in foreign markets, commercial properties (shopping malls etc), infrastructure (tollways, ports, airports etc), local bonds, overseas bonds, some hedge funds stock, cash. Employees would normally elect to be more weighted to equity during the accumulation phase of pension as returns can vary a lot year to year but over 35 years the return has historically been higher. During the retirement phase employees elect for a more conservative weighting as while returns are lower, there is less variability in the returns.
avinash zunje (3 months ago)
I am veruy happy forr your job.i iove you🖕one touch Pawar.
Gijoe215062056 Ham (3 months ago)
Sorry. There dirty a different kind of dirty
Michael G (4 months ago)
100 :p
utubefun8 (4 months ago)
Wow. The example he shared is truly amazing (from 2:00 - 2:30).
Rob Steal (4 months ago)
Only problem with this advise is that the first index fund wasn't invented till 1975.
Kelly KitKat (6 months ago)
What and which Index Fund would that be, specifically ? For the S&P Index Fund only officially came into being in 1957. So, is this a hypothetical index fund ? https://www.youtube.com/watch?v=3iFxUCSTfRU ... Confederate Slave Holdings, US Hay Company ... which basket of longterm buy and hold stocks would this be, exactly ?
Mike Kobrasark (6 months ago)
I am 16 and I have been investing in index fund for the past 4 years.
TheJadeen (6 months ago)
Mike Kobrasark How, you have to be 18....
Riley Griffith - Stock Market Videos (6 months ago)
Contribute maximum to a Roth IRA, put the money into S&P 500 index mutual fund, reinvest dividends! Simplest method and one of the most effective for long term growth. Investing doesn't have to be complicated!
Young-il Jeong (7 months ago)
Please make Korean language subtitle.
ThunderboltTangerine (7 months ago)
That's true, but what about Japan's stock market? Will probably never recover.
easyifyoutry (5 months ago)
correct
Amy Bork (7 months ago)
Watch out, AOC is coming for your billions!!
?,?, (8 months ago)
Warren Buffett = CIAs bussiness manager
Fitness&Finance (8 months ago)
You could wait 20 years to triple your money after crashes up and down or you could quintuple your money this century holding a golden rock that just sits there with no counter-party risk and greedy CEOs and central banks constantly crashing your retirement funds by raising interest rates.
demon66685 (15 days ago)
Quintuple? Gold? It has a rate of return less than 3% historically. That's garbage no thanks.
Jesus is God (9 months ago)
I get paid every week if i invest 65% of my check would i be able to retire in 10 years??
kirisutegomen12 (29 days ago)
It depends on how much you make and what lifestyle you want to have when you retire
Rob Roy (1 month ago)
You'll certainly be close to retiring. And in the meantime, you're giving yourself a "pay rise" with each passing year. Also "retiring" doesn't have to be all or nothing. You can partially retire -- work part time and see how you like all the extra spare time.
Larry Scott (3 months ago)
No. System not set up that way
We Love Libraries (9 months ago)
TQQQ if you are betting on the index
xxx s (9 months ago)
This is all you ever need to know about investing
Andresao (9 months ago)
taking ONLY into account the value of S&P500 in 1942 vs 2018, 10000 would turn into a bit les than 3 million (which adjusted for inflation would be $193,349). Adjusted because 10k back then would be equivalent to $154,600 today. This means that dividends must have been around 48 million dollars. Something doesn't make sense mr Buffet.
kirisutegomen12 (29 days ago)
The numbers are an exaggeration, but you can still make some decent profit
wenen132 (8 months ago)
..... You do realize he said reinvest dividend funds and compound interest also works with dividends. Why would you take ONLY into account the value of S&P 500 when dividends reinvested are much more important?
bonelish (9 months ago)
Mr. Buffett's $51M projection after 76 years of compounding assumes an average annual return of 11.89% -- a _great_ deal higher than the actual total annual return (share price + dividend) of the S&P 500 over the 1942-2018 period.
demon66685 (15 days ago)
@kirisutegomen12 It is a whole lot better than never being rich like most people.
Gin coopland (29 days ago)
@kirisutegomen12 its about ending the cycle of generation poverty you may not see the fruits of your labor but your kids and their kids will.
kirisutegomen12 (29 days ago)
Exactly. The numbers he mentions are an exaggeration. Besides, who wants to wait 70+ years to be rich 😂
Seadog95 (9 months ago)
10000 back then was a lot of money
beswick1111 (10 months ago)
if buffet was jewish, would the comments here be so positive? I don't think so I think they would be the complete opposite, imagine the conspiracy theories around WB if he were a jew? LOL, the Rothschild conspiracy theories would pale into nothing compared to the ones about WB. you guys know im 1000% right, even if you don't admit it here you all know im right.
drott150 (2 months ago)
Buffet's giving all his money away. He's only leaving his heirs a pittance of his net worth. That's something Jewish people never do. Selfless giving is a gentile motive. Endless parasitical scheming and backstabbing? I think we know the answer to that.
Ionuț sth (10 months ago)
Dă și mie 1 milion de dolari, mânca'mi-ai pula de boșorog.
The Difference (10 months ago)
*NEX* is the key to all of this! Thank you Warren Buffet!
Ellis Frost (11 months ago)
Only 18 now so putting aside money towards a house deposit and into an index fund, it's not masses but better to start young I guess :)
kirisutegomen12 (29 days ago)
Start as young as possible. There's no point in being rich when you are 85 😂
ErikGun (1 month ago)
Ellis Frost good for you ! I hope the best happen to you in the future my friend
Nick Lau (1 month ago)
Well done Ellis😊
Rob Roy (1 month ago)
​@beswick1111 Gold and silver is okay if you just want to hoard your wealth. It's an asset not an investment.
Vito Corleone (1 month ago)
lucky you, i’m 28 😭
Penny Budget (11 months ago)
I’m trying to understand where he got his numbers from? S&P 500 back in 1942 was $8.93 which you could of purchased 1,119 shares for $10,000. Those shares today 1,119X$2885 = $3,230,683. Am I missing something?
Albert Einstein (8 months ago)
Suppose that each share provided annual dividends of 3.8% which were reinvested to increase the share portfolio, then essentially those 1119 shares over 76 years turn into 1119*1.038^76 = 19,047 shares. Then that many shares at $2885 each equates to a total of 19,047*2885 = $55 Million as buffet suggests. Now I'm not sure if the companies did provide a 3.8% dividend on average, but if they did, it would explain Buffet's figure.
Andresao (9 months ago)
@Leonardo Jacks dividend reinvesting plan? but still seems too much
VSpeaks (10 months ago)
@Noel Duffy noap you just corrected me which is cool.
VSpeaks (10 months ago)
@Noel Duffy yup I'm wrong
Matt Karin (10 months ago)
I don't think taking the S&P 500 totals from 1942 and present day is how you'd go about the calculation. Also, the S&P is a weighted index. Not to mention it doesn't look like you re-invested all the dividends for every year, plus the compounding effect of those re-invested dividends. The calculation is not as simple as it seems. The link below says the total return from the S&P from Oct 1942 to Oct 2018 was 412,693.782% if you re-invested your dividends. An investment of $10,000 puts the number at roughly $41.2 million. Pretty close to what Warren said. https://dqydj.com/sp-500-return-calculator/
cristian s (1 year ago)
The growth seen since 1942 shouldn’t be use to assume that it will happen like that in the future. Warren suggest to buy an index fund but who knows if USA will be a good country to invest maybe China will be the new USA
drott150 (2 months ago)
@cristian s is exactly correct. America has over 30 million illegals here now. And we are rapidly taking in millions upon millions more indigent 3rd world people from Mexico, central and South America, Africa and the middle-east. And many millions more are on the way. They will vote democrat socialist and we will become a 3rd world country. We're only one democrat president and congress away from all of the illegals - and their extended families - being legalized as US citizens with the legal right to vote. When that happens, which it will within the next 10 years, that's it. Barack Obama's "fundamentally transformed" America declaration will be fulfilled. So looking back to the white 90% European majority/democratic republic/free market governance America from 1776 to the present day and predicting future economic performance based on that previous demographic and form of governance is very foolhardy.
Diego Castillo (6 months ago)
Boo!
Big Red (8 months ago)
R L So 80 years of growth isn’t enough evidence that we will still grow? WTF kind of evidence do you need ? lol If you look at the chart all you see is rise over 80 years even a 5 year old could predict it will keep going up lol
R L (9 months ago)
... lol
globalwarming19 (1 year ago)
With Trump president I don't think America will lose a war, but if he doesn't get elected then I'll sell depending on who our commander in chief is.
Andrew Cogger (5 months ago)
trump is a draft dodging trust fund baby. you guys really need to stop buying into this fake tough guy routine
Vincent (1 year ago)
Buffett Warren I am, invest in Index Funds you shall.....hhhhmmmmmmm
jigyanshu shrivastava (1 year ago)
Wow
Peter Kretschmer (1 year ago)
Worked for the US, didn't work for Japan and most European countries. So how about the next 50-60 years? Are you sure the US will grow as usual? Or will it fall like all great empires did in the past?
roy4922 (1 month ago)
You can diversify with international stocks, target date mutual funds usually do a 60/40 or 70/30 split domestic/international for US account holders.
denis gromov (1 year ago)
Ok, i am officially confused now. I thought Warren Buffet was one of those dudes who said Index Funds are bad, and you should not invest in them and invest in firms that you researched instead. Also try to buy them at discount.
R L (9 months ago)
I don't think he EVER said they're bad. It's not his investment style though, and your potential returns are significantly lower with them.
Kenneth Lloyd (1 year ago)
He is not a fan of bonds
Kris B (1 year ago)
Isn't investing $10,000 in 1942 like saying inveat $100,000 in stocks today? Easy to say but who has/had that money to invest?
Doug S (1 day ago)
This guy keeps making himself laugh to the point of crying apparently.
kirisutegomen12 (29 days ago)
Better question: who has that amount at 10 years old? 😂
Ted Tyler (4 months ago)
very soon I will have 100 000 invested, was diligently saving for last 6 years
easyifyoutry (5 months ago)
precisely. WB was born into cash. was given a huge financial gift from pops to start investing.
Brandon B (6 months ago)
Today? Not many. Most Americans have the ability to invest that, tax free, over time through a 401k though. Paying yourself 10% before anyone else, will make you wealthy.
Alex Jones (1 year ago)
Buffett is very dishonest. And he has never said anything that is really valuable. Why doesn't he ever label the media as the big disaster for investors? Oh that's right, because the media promotes him.
demon66685 (15 days ago)
@SimpleLivings He gives good advice. Invest in a dam index fund consistently and you'll be a millionaire by the time you retire. He said this over and over and it's true plus super simple.
SimpleLivings (1 month ago)
But honestly what are you expect, it's not like he's trying to help you become wealthy. He enjoys being at the top by himself.
R L (9 months ago)
Good grief. Dude. My gosh.
Brad Greenan (1 year ago)
Buffett's ears are longer than a Monday
Rob Roy (29 days ago)
Well secretly Warren Buffett is 200 years old, and he's gradually turning into Master Yoda.
Jason Gallant (8 months ago)
derkhaslol oh great my nose is already big 😂
Brad Greenan (1 year ago)
yeah I heard that before, a lot of old guys have giant ears
derkhaslol (1 year ago)
That's the funny thing, your nose and ears never stop growing. The older you get the bigger your nose and ears are.
D. A. (1 year ago)
Buffett doesn't say stuff to help us out. He says stuff to preserve and promote his public image. And while that is totally fair, take the advice with a grain of salt. For example Buffett says self driving car tech is moot, probably because that directly hurts his car insurance company geico.
David VR (3 months ago)
Buffett is pretty hit-or-miss with his advice.
R L (9 months ago)
@dremeler false. IF theoretically they reduce payouts, GEICO can do much more with its premiums.
William Bagley (1 year ago)
Driverless cars are BS
dremeler (1 year ago)
@l00katy0utb3 If the self driving cars dramatically reduce the accident rates, the need for car insurance would decrease
l00katy0utb3 (1 year ago)
I disagree, self driving cars equates to less accidents which means, less claims and that means more money for him and his shareholders.
kalp dalal (1 year ago)
Compounding is the 8th wonder of the world!
Big Red (2 months ago)
Man of God Dollar cost average and index funds, remember your money will double within 5-10 years with you adding nothing to the balance but if your putting money in every month it will grow faster, look up rule of 72
Scott Belton (2 months ago)
great quote.
Larry Scott (3 months ago)
@Big Red Any investing tips brother
Big Red (5 months ago)
Waz By the way interest rates have nothing to do with compound interest buddy
Waz (7 months ago)
Not so much with interests rates now a days ahah
Ohad Nitzan (1 year ago)
As far as I understand index funds include dividends. In March 1942 S&P 500 was 7.66 and now it's at 2800 level. That means roughly 365 times growth which means $10K would have turned into $3.65 million. What am I missing here?
canefan17 (1 year ago)
Yes, the dividend is automatically reinvested with index funds. But you have to own the index fund to receive those dividends, and then reinvest them. Dividends don't get reinvested into the price of a stock. They get reinvested into a shareholders shares of the stock.
Ohad Nitzan (1 year ago)
As far as I understand, the S&P 500 index already includes dividends, so this still doesn't make sense to me.
Moustafa Choucair (1 year ago)
hi ohad, the index would pay out a yield (roughly 3%) that 3% reinvested would make up the shortfall
محمد الراشد (1 year ago)
maybe that is because 10k then is not the same as 10k now.
borderlord (1 year ago)
Came for the Wisdom...got Distracted by the Legs😳
Jee Vang (1 month ago)
He does have nice legs
Blah Blah Blah (2 months ago)
Best comment!
Squirtleinyourashe (4 months ago)
This is why I always enjoy her interviews 😂
dexter cube (1 year ago)
Who is the lady at the end?
bjkarana (1 year ago)
well, to be fair, that's with a nearly 12% annual return over the last 76 years. Both Buffett and Jack Bogle have said that going forward, index funds are likely to see a long-term annual return of about 7% (per year). So: 1) buy low cost index funds, and 2) try and invest more of your income to offset slower growth. Worst case is you end up too wealthy.
kirisutegomen12 (29 days ago)
Start young. There's no point in being rich when you are 85 years old 😂
kirisutegomen12 (1 month ago)
@Raging Phoenix Games RPG this is a long term investment so about 30 years
Ethan Shjandemaar (1 month ago)
@easyifyoutry small cap value funds are very aggressive in investing and are more volatile. It's a high risk for high reward fund. Just keep that in mind
easyifyoutry (5 months ago)
councilman why?
Councilman Les Wynan (5 months ago)
easyifyoutry nope. You only need US
dawei liu (1 year ago)
He squeaks
Classical Liberal Warrior (1 year ago)
I hate to be excessively DUMB here but...Is Berkshire Hathaway considered a mutual fund? It certainly SEEMS like one! But, if so, what are the yearly expenses to own it? I can NOT find this last piece of information, and it BAFFLES me! :-(
Ryan Kirchberger (7 months ago)
No it’s a conglomerate
Bonnie Archie (10 months ago)
brk-b and brk-a shares.Its a stock.,It holds his many companies in it.The a shares are surreal look at the price.Ive held the B shares.havnt checked into prices in a while but I sold the B shared and made money..
roaringleo57 (1 year ago)
as of 8/27/18 one share of Berkshire Hathaway stock cost $312,850. So it's not for everyone.
LordOfNoobstown (1 year ago)
you dont have to be warren buffet to understand that the world economy is growing ever since the word economy has been used
Aaron Hayward (1 year ago)
America works- love it
Vincent Hunt (1 year ago)
$10,000.00 in 1942 had the same buying power as $159,047.74 in 2018
Felipe Ornelas (21 days ago)
@kirisutegomen12 There's not much of a point at all being rich beyond a certain point. I don't wanna get very wealthy to enjoy all the wealth for myself indulging my earthly pleasures, but as a way to measure my success, a way to have the power to influence people in what I believe are great causes (thankfully by the time I'm very wealthy I'll be much wiser as well), and as means to have freedom for me and the generations that will succeed me.
kirisutegomen12 (29 days ago)
What's the point of being rich when you're 80 anyways 😂
Dave 1977 (1 month ago)
Siegfried3203 for 2k a month you can get a top notch sugar baby.
easyifyoutry (5 months ago)
@Peter Kirkwood yup, WB likes to BS a lot. and he was also born into riches and given big financial gifts to start with
Kevin Kostyk (8 months ago)
@Peter Kirkwood This is literally the most ass-backwards math I've ever encountered on the internet.
borderlord (1 year ago)
Does she auction her used panties?Please say yes!
Rob Roy (1 month ago)
Maybe she does. If I were here I would use that money to invest in index funds.
Aaron Kurz (1 year ago)
#feminism
sent4dc (1 year ago)
He always has such a positive attitude. Love Warren!
Raymond Payette (1 year ago)
Not quite true.In 1942 with $10,000 you could buy a nice house, so it's like $250,000 in today's value. There was no stock exchange account like SPY, so you might invested in GM, Texaco and TWA that wouldn't have worked out so well.
demon66685 (15 days ago)
The dija?
Mark M (1 year ago)
this is such a load of nonsense. buffett does not and has never invested in index funds. learn about the market and make your own picks, only way to get rich
demon66685 (15 days ago)
Unless you're a dam genius like the guy who handles yale's portfolio this strategy is the best for most people.
Ultimate Gattai (1 year ago)
@interests10, did you look at something like Vanguard's sp500? That's where Warren Buffet's money will go after he dies, I haven't really looked at etfs much.
interests10 (1 year ago)
which index funds r good and this include etfs or not?
Ultimate Gattai (1 year ago)
Index funds are a legit strategy, If you can't devote the time and effort to picking stocks, you can at least guarantee a decent win through a good index.
fendermon (1 year ago)
You missed his point mark. His point is you don't need to be a stock picking wizzard to do well. A relentlessly higher market proves him right.
Alexander G (1 year ago)
What happened if you bought a waterfront land lot on Long Island in 1942?
Ted Tyler (4 months ago)
@Mechannel , great point
Marcus Lance (6 months ago)
Alexander G They have a net worth tax in Europe ? That’s ridiculous ! Which country are you from ?
Reasonable Speculation (1 year ago)
Managing real estate is a lot more stressful and time consuming then Index Funds.. Also much more risk...  Buy a piece (S&P) of  the Means of Production and let  the Pros handle the 'day to day', then take your cut (dividend) of the profit...
Alexander G (1 year ago)
Mechannel Usually you can Transfer Property taxes 100% to the tenant. If you sell land or buildings that you own at least 10 years, the gain is Tax free! This is the situation in Europe, I pay 35% income tax on dividens plus net worth tax every year
Mechannel (1 year ago)
It would mean you've been paying sky high property taxes for decades. Index funds don't send you a fat tax bill every year.
scott offord (1 year ago)
Always a good listen. Dollar cost average investing over 35 years will allow me to retire comfortably. I advise all young people to begin EARLY
kirisutegomen12 (1 day ago)
@bonelish lol if I held the money 50 years, I would be 100 years old. What's the point
MechaMicro (3 months ago)
True with the growth 20% year (estimated 30 times return after 30 years is too good to be true).
canefan17 (9 months ago)
You haven’t missed it at all. I’m 35 and know I haven’t missed it.
bonelish (9 months ago)
@S You haven't. Most people your age are paying off student debt, or current tuition if they attend graduate school. As Mr. Buffett noted, a $10K investment compounded over 50-70 years at 7-8% grows to a bloody fortune. Even if you don't have the full $10K in year one, you can build it up over a couple years (say, $3,333 per year for three years), and have your $10K initial investment. The secret is _time_ and the arithmetic of compounding (and the dividend contributes a very substantial part of your return in year 50 through 75). (Of course, you'll be a 100 y.o. in year 75 of your investment...but you'll have $51M!)
S (10 months ago)
Thanks guys
koko nuts (1 year ago)
ur old enough, take a rest 😏😇
Breaking Toast (1 year ago)
no doubt Warren Buffet is a genius I just wish he wasn't so bearish on bitcoin I have stocks and bitcoin
canefan17 (1 year ago)
Block chain is here to stay - but bitcoin ain't. That will be its contribution though to the market.
Abitamim Bharmal (1 year ago)
Breaking Toast ethereum is much better. And asset based crypto is a good idea. Without anything backing it up, it is only with it's hype. It could crashes or boom.
Breaking Toast (1 year ago)
Abitamim Bharmal .i know but thats not the point it has become the driving force for blockchain it is the gold standard they are very few but can be used as a base of wealth accumulation to attain faster growing alt coins with faster speedier technology , do you understand why it is at the price it is today why do people assume bitcoun actually has to be the ultimate crypto it is still doing its job and more it drives the market with its inovation
Abitamim Bharmal (1 year ago)
bitcoin isnt even a good cryptocurrency
Alief RezkiNanda (1 year ago)
Because bitcoin is not Investment
Endika Aboitiz (1 year ago)
we are going next year..
Gaël des Montagnes Noires (1 year ago)
🚀Buying & Hodling Bitcoin has worked for me, from $150 6years ago to 20k 6months ago 😄
Rob Roy (29 days ago)
You do realise that $20k in bitcoin is not the same as $20k invested in property, index funds, shares, gold or silver. If you have that amount in bitcoin, I sincerely hope you have about 10x that amount invested elsewhere.
Alex (7 months ago)
@Lone Ranger Exactly lol. I doubt they'll come back boasting now. Their initial posts were likely a feeble attempt to solicit attention to make them feel some type of way, but EVERY avid investor knows cryptos were nothing more than a bubble for the sheep to flock to. Sure some made a killing (the early "adopters"), but MOST got burned badly. Cryptos have literally 0 intrinsic value, little to no protections for "investors" (gamblers really), and were and are still being pumped up by fraudulent "analysts" and children who've never invested a single dime in their lifetime before gambling with BTC. Hilarious really.
Lone Ranger (8 months ago)
Blockchain Gael January 2019 how’s that crypto treating you now 💸🔥🤣
canefan17 (1 year ago)
lol @ cryptocurrencies.
Chris Baker (1 year ago)
Hopefully you sold bitcoin in December or January.
Murrell Selden (1 year ago)
Could be the turn now happening means "short the index funds." But who will get hurt the most? Obvioously the top 1% and 10%!
Fred Howland (1 year ago)
Becky is a goddess.
5aral (7 months ago)
True. A hottie
Ingrid P (8 months ago)
All that dye and make up....
Shatner Williams (11 months ago)
Fred Howland ^^ thirsty beta
Ganesh Nayak (1 year ago)
Love America.. Please hold on to your capitalism ethos.
Doug bananaboy (6 months ago)
Antonio Lansang yes your term is correct “corporatism “. So much tax payer money gets funneled to corps . Ind pay 30 percent tax while corps pay 0 or 9 percent in many many cases ..as one example of Corp rule over ind . It’s not red vrs blue . It’s Corp vrs individuals
Antonio Lansang (6 months ago)
@Doug bananaboy Socialistic bailouts? Corporatism would like to take some credit.
canefan17 (1 year ago)
Ganesh Nayak absolutely. Best system the world has ever seen.
Reasonable Speculation (1 year ago)
Ganesh Nayak … Agreed... Sad to see Americans living so well for so long that they become complacent, and ignorant of economic fundamentals,,,, crying like children when things do not go just as they would like, when they should take the opportunity to become Owners of the means of Production.
Abitamim Bharmal (1 year ago)
probably has some indian friends at google
Dom Jervis (1 year ago)
This is just such the BIGGEST CROCK! Becky is servicing the Ol' Boy's Ol' Boy just to get an interview from him...year after year after year after year. She has ABSOLUTELY NOTHING ELSE to offer the Ol' Codger. And it's not as if his interviews are worth anything to Retail Investors. He's as bad as Greenspan was in terms of Guidance to the millions who cared about what he said. Both of them...worthless...absolutely worthless...
DL (1 year ago)
yawn, sigh....
canefan17 (1 year ago)
yawn - another lefty liberal who's jealous of his wealth. Buffett has nothing to gain by intentionally giving you bad investment advice. And spare me any sort of profit motive line.
bjkarana (1 year ago)
oh I bet he's a day-trader. I keep a quart of milk longer than most of those braggarts hold a stock.
Mirza Uwais (1 year ago)
I’m alone smiling about Sir warren smile style when I think alone, body style with smile style very joke smile..👍✌️
Richi Ranas (1 year ago)
Can’t wait for deranged old phukfaces like this to die off😏
demon66685 (15 days ago)
You're a Piece of trash.
Mac _ (11 months ago)
Seems like your jealous
Ryan O'Donnell (1 year ago)
America works :D
bighand69 (1 year ago)
Index funds did not exist in 1942 but his point still stands. They have been available since the 1960s and if you invest today they will grow to a large amount in 20,40 or 60 years. If you bought a series of blue chip stocks in the 1940s guess what the same thing would happen. Long term value investing creates amazing growth. Buffett is bang on the spot with that one.
Rob Roy (29 days ago)
1942 was probably the darkest year of a devastating world war - I'm not sure if the average person was thinking about long term investing at that particular time.
kirisutegomen12 (29 days ago)
Start early. There's no point in being rich when you are 80
Quade Q (3 months ago)
@easyifyoutry My own diet is roughly 25% CoCola, and I am in tip top health, I eat MCD about twice a week(in moderation of course). I also own a few individual shares of these companies, as well as Bayer, because I consider their business models to be sound. My largest investments are in Vanguard's S&P500 index funds and am very happy with my share of market returns.
easyifyoutry (3 months ago)
@Quade Q oh well if you have family like that it must apply to everyone.
Quade Q (3 months ago)
@easyifyoutry I have family that eat like that and they are in their nineties. Their variable annuities are largely in the S&P500 and are quite well off.
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Kim0lan (1 year ago)
окей
Kim0lan (1 year ago)
прикол
Kim0lan (1 year ago)
классс
Kim0lan (1 year ago)
прикольно
Kim0lan (1 year ago)
прикольно
crash mongua (1 year ago)
uff