Warren Buffett: Buying And Holding Index Funds Has Worked | CNBC
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- เผยแพร่เมื่อ 12 มิ.ย. 2024
- 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 Buffett.CNBC.com
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Warren Buffett: Buying And Holding Index Funds Has Worked | CNBC
Now to the comments to see what the experts have to say
Lmaoo
Nothing to add . When Buffett talks its always crystal clear
LOL. That's the truth isn't it.
He attained his wealth through insider information all his life..starting with his father who was in congress...the only government body who couldn’t be prosecuted for benefitting off insider info. So he abused it like crazy. His granddaughter called him out on this and he disowned her lmao.
@@johnkayz7137 well the way I understood it is that his “grand daughter” shared her grievance on a televised interview to why he didn’t share more of his wealth with her or other family members after completely paying for their college education.
As Warren mentioned he was never obligated to give her anything as he never even emotionally adopted the lady seeing how she is the step-daughter of his son and not even a blood heir.
Didn’t catch the information about her having information about Warren making his come up due to his dad’s inside information on the stock market. I’ll have to search that one.
Thanks for giving me something to do this evening.
"It is not necessary to do extraordinary things to get extraordinary results."
- Warren Buffett (on Index Funds)
Warren seems to be the kind of person you meet in a waiting line and who you have a good conversation with as a complete stranger.
He always has such a positive attitude. Love Warren!
sent4dc well yeah he’s got 80 billion dollars
@@noahgoat8341 Which has **nothing** to do with why he is happy. [Note 1] He has a very sophisticated/intelligent character/psychology in my opinion, which might be one of the reasons why he did so well when investing (for example he doesn’t panic sell).
[Note 1]: Read www.cnbc.com/2018/02/27/warren-buffett-doubling-your-net-worth-wont-make-you-happier.html
@@JanischMaximilian well yeah he’s got 80 billion dollars
@@josereyes1148 Indeed he does 😂
@@JanischMaximilian having 80 billion dollars goes a long way towards having a pleasant disposition.
i like how he always talks about charlie
@Emanuel Franco nice try, fake accounts
i know Im randomly asking but does anybody know of a trick to get back into an Instagram account??
I stupidly lost the account password. I would appreciate any tips you can give me.
@Westin Kamari instablaster =)
I'm 70 and retired, I have $302k in a bank savings account making nearly nothing in interest. I’d like to put it in a HYSA (5%) or should i put a portion in index funds? I have $400k in an annuity. How do i maximize all this to make gains this year?
In this current unstable markets, It is advisable to diversify while retaining 70-80% in secure investments. looking at your budget, you should consider financial advisory.
Agreed, my portfolio is well-matched for every market season yielding 85% from early last year to date. I and my advisr are working on a 7 figure ballpark goal, tho this could take another year. IMO, financial advisors are the most sought-after professionals after doctors.
massive gains! mind sharing details of your adviser pleas? i've started gaining more cash flow with my employment and looking at putting money into stocks and alternative assets that can help fuel my money goal
She goes by ‘Jennifer Leigh Hickman" I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
you should not ask about it on youtube and other garbage places, go to a professional and get proper advise
or you might have 2k in savings after someone helps you with advise or directly...
Compounding is the 8th wonder of the world!
Not so much with interests rates now a days ahah
Waz By the way interest rates have nothing to do with compound interest buddy
@@BigRed2 Any investing tips brother
great quote.
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
Who would've guessed the old man from Up was so wise regarding money?
Lmao
What is the best way to profit from the current market, meanwhile I'm still undecided about investing $400k in my stock portfolio to get some dvidends and minimize risk
Remember that investing in the stock market carries risks, and it’s important to do your own research and consult with a financial advisor before making any investment decisions.
With the help of an investment advisor, I was able to diversify my $550K portfolio across multiple markets, and in just a few months, I was able to earn over $950K in net profit from high dividend yielding stocks, ETFs, and bonds
Pls who is this coach that guides you? I’m in dire need of one
Having a good FA is essential for portf0lio diversification. My advis0r is Nicole Desiree Simon who is easily searchable and has extensive knowledge of the financial markets.
I Found her online page by searching her full name, I wrote her an email and scheduled a call, hopefully she responds soon. Thanks
"Imagine you buy a farm.." - Warren Buffett 2018
Warren Buffet, every interview, every time. :D
Thank you Mr. Buffet for all advises .Nice of you to educate the public.
The GOAT of investing!
yes, you are GOAT of investing ! mr.divident fraud
Thank you so much for sharing this useful data! Greatly appreciated
I love his humor and laughs 😄 seems like an approachable guy
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.
Really where have they said this. And how long term are we talking. 10 years or is this more of a Permiant than thing
Both Bogle and Buffet have suggested that 7% figure (share price appreciation + dividends) in numerous interviews since 2015. As for how long, perhaps a decade or two? They could turn out to be wrong, but based on Bogle's famous "reversion to the mean" mantra, it's likely that the strong performance of mutual funds in the 90's and early 2000's are likely to lead to more modest returns for about the same time period going forward. Bogle especially likes to bring that 6-7% figure up to reinforce how important it is that investors watch their fund fees like a hawk, because more modest returns mean less room for making mistakes.
@Jacob good point!
Jacob Why? Global real returns before fees and taxes have been 5.2% since 1900. Not 7-8%.
which index funds? Global ones that cover all countries?
you dont have to be warren buffet to understand that the world economy is growing ever since the word economy has been used
Wasn't growing in the 1930s.
@@conorm2524 There will be short periods where it doesn't grow. But at some point in the future it will have risen higher than it was before hand. It wasnt growing in the 1930's but it has eventually risen to where it is now.
$10,000.00 in 1942 had the same buying power as $159,047.74 in 2018
Thats not EXACTLY what he said. $629 dollars in 1942 would have been the equivalent to $10,000 USD. He said if you put $10,000 dollars. He could have implied every year, inflation adjusted and compounded with dividend's re-invested, you get your $55 million number. Present value vs future value is understood when he's speaking. The guy is old give him a break.
a house was about $3,000 - compared with about $500,000 now - so $10,000 was about 3 houses or $1.5 million
Not in Michigan. Maybe in California
Yea but who would wait and watch grow that big and spend that money? Lol
@@apk001 Your numbers are off the mark.
The average house cost $3770 in 1942.
The average house cost $294,200 in October 2018.
By your example: 3 houses would have cost $11,310 in 1942 and $882,600 in October 2018, nearly half of the $1,500,000 you're claiming.
I hope your wife is in charge of the finances in your house.
"America works!" Love it!
"HUHEHEHE!" - Warren Buffett 2018
Great words of wisdom and experience 👍🏼
Everybody's got an opinion. I'll take Warren Buffett's opinion ahead of the others. FWIW, there are plenty of investment guru's who beat the index for a business cycle but very few who have beaten the index long term. I've known for a number of years that Buffett has recommended index funds for people who don't have the time or the inclination to do the homework on individual stocks. Index funds have been getting a bad wrap by many recently and it was time for Buffett to repeat himself. Thank you sir.
Really like his comment at the end "America works." Keeps the great optimism! Thankful for living in a blessed country in the midsts of difficult times.
Still so active and loves investing,
investing is an endless topic
what more someone could dream of
Spent a lot of time and could not find this full interview. Please help!
What yall think about investment account options for terminal life insurances? Worth it or should i go full index funds ?
Sir I have great respect for you and keep you always in high esteem
Buy and Hold!!! This is why I never day traded!!
And a crash happens and you lose 50%! Remember after the crash of 1937, it took 17 years to recover!
x x market crashes don’t exactly happen overnight. I’m actually very excited for the next crash because I’ll be able to buy into strong companies for cheap. Just remember after every bearish market, it will be followed by a bullish market.
I gained a lot in individual stocks. Should I rebalance them and put the gains into my ETF...?
@@nathenstone4147 not before the market crushes all your optimism.
Mr White it’s not optimism. It’s an inevitable pattern. Do you think companies like google and Tesla would take a hit and never recover?
That laugh at 27 seconds is life 😁😁
Here it is again, I'm 60 now and I'm glad I listened back when. @1:57
Today it's not about return ON capital. Today it is about return OF capital
Thanks for this advice Warren
Charlie is truly a savage. Kids nowadays would never know how great he is
But how?
By kids nowadays you mean you? You barely know the dude besides watching videos of him, so what is stopping the kids nowadays from watching those videos? As a matter of fact kids are getting smarter and smarter. I hate to admit it because I'm 35 but it's real. So many younger millionaires and so many richer people exploiting other people.
America works indeed!!
Inspiration💖💖
I started 2 years ago and man follow mr.buffet has been a ride :) I straddle trade in this market.
Good interviewer as well
Every investor intention is to build a portfolio that can beat the market yet fails to understand that finding success with these Investments isn't necessary rocket science, but it does require putting in hard work, taking risks and ensuring proper research on the right stocks to invest in.
Investors must carryout research and reviews before engaging the market, index funds is certainly not a bad idea adding it to your portfolio can help gradually grow your Investment.
It's one of the most profitable long term investment that grows overtime, it's always positive owning index funds.
Adding a bit of index funds can help improve the overall performance of your portfolio over the years and a good passive income can also be generated.
This video is super inspiring, I have never really placed much attention to index funds but now I feel the need to invest in it.
I have a well diversified portfolio not only on index funds also on dividend and other valuable commodities, the aim is to build a good passive for a long time after retirement.
Buffett : America Works
Coronavirus : Hold my beer.
Temporary problem
Josef Adams America: hold my beer and shot of whiskey
America is still working with the Coronavirus.
This pandemic does not change the 10 year outlook of the US. Warren Buffet recently said this.
this has provided many young people a great opportunity to begin investing in ETFs.
One of the most brilliant investors I admire.
Here's another trick on how to invest in index funds. It's buying and holding, but there's one more thing we need to add: th-cam.com/video/hY3MMgvlB4o/w-d-xo.html&t
When taxes and fees are factored in there is no better choice than a market index for any extended period (say 10 years or more). The best analogy I can give you is the following: I am telling you BEFORE a 15 horse race starts which horse is guaranteed to finish 2nd. If one is foolish enough to say "I will ignore that advice as I think I can pick the winner" than so be it. You can make a hell of a lot of money knowing which horse finishes 2nd.
And that is asset inflation which was enabled to reach such an amount due to increased productivity
He also hinted he let the experts do what they do best sort of like buying a farm and letting the farm manager take care of it. Please purchase the Art and Science of Shepherding. Nothing to do with finance but all to do with Eco-nom-ic system. The power of mon-ey is in semantics.
The worlds wisest investor, a holy land of financial knowledge in that head that it's scary.
1:39 1942 I bought my first stock
1:57 Best thing you could've done is buy an index fund and never look at a headline or think about stocks
2:17 If you had put $10,000 it would be $51,000,000 now
10000 back then was a lot of money
About that...
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 TH-cam 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.
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.
@@gincoopland6545 Thanks but I didn't say I was looking for investment advice.
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.
@@user-eq2vu1fq3w 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!
Such a wise fox. Index funds with low cost managements and REINVESTING dividends.
hello guys everyone who is buying index funds do you pay overnight fees. cause I have to pay it even though I am not using leverage.
I frankly do not know much about investing online. I have been looking to learn more about online investing, but it has not been easy for me. I wanna invest as soon as possible. How can I begin?
It is good to begin stock trading, but always have this at the front of your mind, one of the reasons why many fail on their investments or trading is because they try it without proper guidance and money management. I will advice you get advice from an experienced stock broker.
Have you considered getting the help of a financial adviser or a good portfolio manager? You should, It is the best way to start.
I totally agree with Alex, you need a financial guide to put you through all what you need to know and also to tell you when or where to invest your money. Some persons will just jump into investing on what they know nothing about. My good advice is get a financial consultant.
@@AlexaJohnson0 How can I get a reliable financial consultant? A good recommendation will be nice.
How can I get her contact? because I need to make some clarifications
The man tells everybody the same thing buy a ETF and hold yet so many people are trying to outpace the market or worse buy ETFs and then try to trade off you see it on so many financial channels on TH-cam and this man who has success in the market from ETFs is basically explaining to you in the most simplistic way possible
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.
Lots of the indexes were never spoken again That's because they did terrible. some of them in the last decades or so, they did fine, but the interest rate were going down. Coupled with QE, that's why risk asset is doing so well. Big shareholders asked companies to borrow up with record low interest rates and buy back their stocks. The result is of course index fund did well. The problem is interest rate can't get any lower and the next decade or so the aging population and wellfare expense in the developed countries are going to get skyrocketed, which means inflation is going to jump on us gradually and interest rate is going to be kept high. That means this whole thing is going in reverse. Index fund is going to get slaughted in the future. The idea of investing into a fund that distribute to the companies with the largest valuation blindly is the exact wrong thing to do in a higher interest rate enviorment.
That's why I hold a balanced index fund. Both stocks and bonds.
Livefree Ordie You didn’t do your research. It is only a few second to pull up the DJIA or S&P500 history chary, and you will see, that they were growing very well in any reasonably long period of time.
Any method which could outperform it involved significantly increased risk, and way more work. It is even true even for experienced and educated investors, but very very true for inexperienced individuals, who are more driven by their emotions.
bighands69 z33
The great thing about investing in equities is that you can pull your money out and buy bonds or Tbills if interest rates climb past the point of expected equity returns.
Rising interest rates aren't the danger. The danger is that you have your money in the market, the market crashes, and then before the market can recover, you need your money, so you pull it out of the market at a steep discount.
If inflation goes crazy, it's going to hurt any one whose wealth is denominated in dollars, which means any one not holding real estate, gold, or something that's similarly hedged against inflation. The problem is, does any one trust products that are backed by real estate, after the 2007-2008 meltdown? If interest rates and inflation take off at the same time, then buy gold (or silver, or whatever you think is the best priced commodity).
In any case, it all depends on the time line you're talking about. For some one who is investing for 20-30 years from now, equities are a fine purchase even in the face of inflation and high interest rates. Even if they slump over the course of 3-4-5 years, or even a decade, as long as the underlying value exists, the equity market will eventually reflect it.
Came for the Wisdom...got Distracted by the Legs😳
This is why I always enjoy her interviews 😂
street hookers and newscasters wear the same dresses. One group gets more respect than the other.
😂
@@Scottieguru Yeah nobody respects newscasters.
That why you are poor.
Just something to note.... don't worry TOO much about investing. Tomorrow isn't promised, set some aside for sure, but also go out and enjoy your life... spend money on that vacation or food! You can't take it (money) with you when you're gone.
Preach!
Who needs this guy when you've got dropshipping wannabes in the comment section
I know a lot about bitcoin and already maked enough profit,
plan to invest know in index funds,
can you recommend me 3 or 4?
p.s I heared about s and p 500 but thats all :s
@@sam_180x sorry but I don't know anything about this and I also want to get into investing..I've also been told s and p 500 and I've put my money it it but I've lost it
@@sam_180x I highly recommend an index fund that follows the S&P 500 such as the Fidelity S&P 500 Index Fund. If you do plan on investing with fidelity, they also have a total market index fund and if you have a Roth IRA with fidelity, they have index funds that are meant to maximize the amount of stocks vs bonds for when you turn 60
6:34 am 7/24/2021
The market's on sale right now, but only for a limited time. Go BUY BUY BUY right now!!
It might fall to below 60% if this debt crisis blows up
And even if the debt crisis does not blow up (yet) the mexican beer plague is gonna wreck both supply and demand for a few months to a few years. I'll wait, this crisis has barely even begun. :/
The world is destined to descend into greater chaos.
This didn't age well lol
Turns out you were correct.
the simplest way to invest is to buy etf's that track the s&p500 index... historically you would never loose money if you buy and hold
This guy has great potential
Wall Street: Index funds have outperformed other investing strategies
Also Wall Street: Past performance does not necessarily predict future performance
Dave Ramsey says the opposite.
@@mr.worldfree3333 and I prefer to listen to Warren :)
@@mr.worldfree3333
Ramsey has not said index funds are bad just that good mutual funds will outperform the index.
@@bighands69 and your probability of choosing a good MF is as good as choosing a Bad MF. Thus index fund , lower risk, comparable returns.
@@rohitroll2119
If you just bought Buffett's Berkshire hathaway you would outperform the index.
There are plenty of great mutuals out there that are not super exciting, not in the media, that base their investment on value and quality and they routinely outperform the indexes through thick and thin.
Indexes are fantastic and there are mutual funds that are fantastic as well that have great track records that do exactly as they promise with their investments. If you just picked the top performing companies in the index and stayed with them for 20 years they would outperform the index.
March 11 💪🏽
I'm 21 and looking into investing. I've got 12k sitting in savings account picking up a pathetic rate of interest as it seemed like the 'smartest' place to put it. At least 8k i will not need for the next 5 years, so surely that is better off in an index than a savings account on .05%?
Since this Warren Buffett interview index funds have increased in value even further and has beaten the vast majority of non index funds too. When do you sell? The answer to that question is usually How much do you want to get out of the investment? Buy with X amount of lump sum until it's worth the lump sum you desire!
2:04
Gees Warren, $10k in 1942 was a lot of money and inflation adjusted would be almost $150k today.
$10000 in 1942 would be about $70,000 in todays money. Back then $10000 due to strong purchasing power would have been better value.
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.
Why not buy Berkshire Stock instead?
51 Million wow
Invest today 10 years later.. : )
No Sheppard Smith? Nice trade. 👌
because the market has gone up in last ten years.......if you look further back index fund does not perform that well.... but has who is keeping track of nowadays.... is all about sound bites
2018
The goat
*NEX* is the key to all of this! Thank you Warren Buffet!
😳!!! 51 million dollars! WoW! The rewards of spending abstinence
America works- love it
Now sign give ok
Index fund may not give you the most money, but in the long run you are 90% likely to make money and NOT losing anything.
It is one of the safest bet on the market.
Warren Buffett that beloved nefew of yours😇😁😎
Hey everyone, torn when it comes to investing. Not sure if I want to become an active or passive investor. Would love to be able to be completely financially free by 2031. Want to actively invest in big companies like Tesla etc and also want to invest in Index funds. Need help please!
Compounding dividend is fantastic... - Berkshire does not pay dividends
yeah thats something i never understood
I just realized how big Warren's ears are lol
They never stop growing
Almost as big as his bank account.
Lolooool
That is why he is so smart lol 😂
He squeaks
Lols, anyone here during the Corona Crash? Suckers hold.
But nobody has that staying power...
yeah in order to use compounding I need to work harder to make more money
What’s the best index fund?
Vfiax is the one buffet used
I just bought long calls exp 2022 set it and forget it. Coronavirus stress free 😉
Chino's Corner always set it and forget it :-) until the day you wanna retire that is :)
I know a lot about bitcoin and already maked enough profit,
plan to invest know in index funds,
can you recommend me 3 or 4?
p.s I heared about s and p 500 but thats all :s
She has the best figures in this video
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?
Penny Budget :Reinvest the Dividends too
Leonardo Jacks still the numbers don’t add up, calculate it.
@@SuperSurr73 you DON'T understand compound interest.
VSpeaks I think you are the one who doesn’t understand compounding interest. I did the calculations WITH compounding interest. Please provide me with a breakdown if you believe you understand it better than I do.
@@SuperSurr73 it's fine I accept my mistake ;) maybe you are right.
0:21 lol this dude only drinks coke
I had a grand uncle who was the same lived to he was near 90.
Rest of wall street snorts it
He owns alot of Coca-Cola stocks
Huge fan of Buffet, but I have a question. He said the best thing you could have done back then (40's) was to invest in index funds. Didn't index funds begin to exist in the 1970's?
Yeah, he's saying if they existed, it would have been the best thing to buy and hold
Do as I say and not what I do.- Warren Buffett
Time warner
The girl looks like Elizabeth Olsen(superman girl)
I wish younger folks would listen more to Warren.
I love the way Buffett chuckles to himself at 0:17.
This is all you ever need to know about investing
I am 14 years old just starting I have 5000 dollars just sitting. would invest in some great ETFs (SPHD) one of them but I live in the EU and you cant invest in US-CA ETF's. some great tips where to put my money in?
Sorry I can't be the one to give you some great advice ... But you seem very knowledgeable at such a young age and it seems like you have done your homework and the only advice I could give to you is just keep using your head like you have thus far and don't be impulsive.. I have made some major mistakes in life being impulsive so I can't stress that enough Stock market or anything else in life don't be impulsive... Of course you sound way smarter than me and you probably already know this....
WARREN BUFFETT IS THE ONLY PERSON IN AMERICA THAT KNOW THE STOCK MARKET VERY WELL,
EVERY ONE ELSE JUST GAMBLING!
WARREN IS LIKE ALBERT EINSTEIN ONE IN A BILLION.