Warren Buffett is one of the most successful investors of our time.
While he has been very successful at beating the market by choosing a bunch of different stocks that have solid growth potential, it’s not a strategy he recommends to everyday investors.
Warren Buffett is a big advocate of broad market index funds, such as S&P 500 index funds, for everyday investors who want to enjoy solid growth without taking on undue risk.
To him, investing in the long term is the key to success, and this is true for both focused investing and index fund investing.
In this video, Warren Buffett talks about the differences between investment and speculation.
The speculation involves trading a financial product involving high risk, in expectation of significant returns.
Buffett believes other people’s speculation actually offers great opportunities for investors.
Source: Finance Jane (Shared via CC-BY)
