Warren Buffet: Index Funds

Buffet’s earliest philosophy is value investing or conducting deep research to find hidden gems destined to grow

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Buffet has also acknowledged that value investing is time-consuming and unpredictable

So, he’s been a longtime supporter of index funds or ETFs! 🧺

With ETFs, or bundles of stock, a group of professionals is responsible for researching those companies

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This allows investors of that ETF to simply buy in & trust the professionals, saving simple investors time and money with instant diversification

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Buffet once correctly betted that a simple S&P500 index fund would outperform actively managed hedge funds

📈 For the past 20 years, he’s been correct!

As for the digital world, Buffet believes in intrinsic value, or always asking if you would own something if there wasn’t an assigned value to it

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Buffet believes a luxury bed is still useful since you can sleep on it

But a $30k crypto coin without any intrinsic use is not

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