Want to Know Warren Buffet's Single Best Investment Idea?

Last weekend Berkshire Hathaway shareholders made their annual pilgrimage to the company’s annual meeting to hear the Oracle of Omaha and his partner, Charlie Munger, share their wisdom on investing.

One shareholder asked what is the single best specific investment idea that Mr. Buffet would recommend to an investor in their 30s.

The answer?

“I would just have it all in a very low-cost index fund from a reputable firm, maybe Vanguard. Unless I bought in a very strong bull market, I would feel confident that I would outperform . . . and I could just go back and get on with work.”

Wall Street has spent billions of dollars trying to convince investors that their money managers have special skills, powers or magical abilities that enable them to regularly outperform the market.

And here, the man widely regarded as the Greatest Investor Who Ever Lived, says the low-cost index fund is his best investment idea. Not only that, but he thinks investors who use index funds will “outperform.”

So you have:

• “Low cost”
• “Outperform”
• A strategy that lets you “go back and get on with work” or whatever else you want to do (ie. peace of mind)

So tell me again why investors paying money managers around $100 billion a year to try to beat the market?

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