QuestionerFor a new investor buying stocks today, would you recommend that they buy a low-cost S&P index fund or Berkshire Hathaway, and why?
WarrenWell, we never recommend buying or selling Berkshire. But I would say that among the various propositions offered you a very low-cost index fund where you don't put all your money in at one time. I mean, if you accumulate a low-cost index fund over 10 years with fairly regular sums, I think you will probably do better than 90% of the people around you that take up investing at a similar time. Charlie?
CharlieI would agree with that totally. It's awkward for us sitting here at these annual meetings where we have a sampling of some of the most honorable and skillful stock brokers around. who've done a wonderful job for their own clients and families. But the stockbroking fraternity in total can be guaranteed to do so poorly that the index fund is a better, better option.