Warren Buffett says monkeys might as well invest as financial advisors on Wall Street
Legendary investor Warren Buffett calls investing the “easy game” that financial advisors have convinced the public to be more complicated than it is.
At Berkshire Hathaway’s annual shareholder meeting on Saturday, Buffett lashed out at Wall Street financial advisers for “catching the fallen crumbs of the hordes of capitalism. Saying that “monkeys,” in most cases, could get a better return on investment. Only by make them throw money at American companies.
“You can get monkeys throwing arrows sideways and, you know, reduce management costs and everything, I bet on monkeys [through advisor],” he said. Nothing that the Dow Jones Industrial Average had jumped from $100 to more than $30,000 since 1941. Buffett says most people should invest their money in “American businesses” and let them grow.
“It is amazing how best it is for people to play a simple game,” Buffett told advisers. “But of course, if they tell everyone how simple the game is, 90% of the income of people who speak will be lost. So Buffett has long advised investors to put their money in a low-cost index fund that tracks every held stock. Index, which automatically diversifies them. For example, the S&P 500 includes large companies such as Apple, Coca-Cola, and Amazon.
Buffett previously told news that a diversified index fund. Almost always makes the most sense for people looking to build their retirement savings.”