Warren Buffet investing style

[Wictorian]

What is it?

[Levent]

Correct place to ask that is google. You want us to google shit for you?

[Chionele]

Buy things you know about, complain about things you don't know about.

[Tristerin]

Own the entire supply chain as an investor - reap rewards anytime something moves through the supply chain from start to end user.

[kokakolia]

2 hours ago, Wictorian said:

What is it?

INDEX FUNDS. 

 

That's it. Anyone can buy index funds for any amount. It's shockingly easy to do.

[TetraSky]

3 hours ago, kokakolia said:

INDEX FUNDS. 

 

That's it. Anyone can buy index funds for any amount. It's shockingly easy to do.

This is quite true.

5 years ago, if you had invested some money in S&P 500 index fund, today that money would've almost doubled.

 

Could you make more money by investing in random companies? Sure. But unlike an index fund that typically always go up:

 

Regular stocks are unpredictable. You may invest $1000 in a stock that's worth a few pennies today and in 5 years it could be worth $50, basically making your initial $1000 investment into a $50k+ investment... Or it could end up in a bankruptcy and you losing all your money.

 

So basically, if you want to invest money and just... Let it grow for years to come without much input on your part, index funds are certainly a place to go. But you may get unlucky. Like from 2000 to the end of 2012, there were next to no change in the amount of the fund. Someone who investment in the S&P 500 in 2000 wouldn't have seen any real change in their money for 12 years... That's worst than if you had just let it sit in your bank account with something like 1% in interest per year.