Posts with keyword index-fund→
In the recent annual meeting
of the Berkshire Hathaway
shareholders held last Saturday, CEO Warren Buffett was asked about the best investment idea he would recommend to an investor in his 30’s. In his own words:
I would just have it all in a very low-cost index fund from a reputable firm, maybe Vanguard. Unless I bought during a strong bull market, I would feel confident that I would outperform…and I could just go back and get on with my work.
In Part I, I discussed the two main and opposing theories of investing – efficient market theory (EMT) and fundamental analysis (FA). Here I talk about which one of these two can be thought as “correct”.
Continue >>
(This post is a part of the series Basics of Finance and Investing.)
It did not surprise anyone when Warren Buffett, while recently hosting
a group of business students from the University of Pennsylvania’s Wharton School
(his alma mater) for a two-hour question-answer session, began by pointing out the folly of the efficient market theory (EMT). After all, his objection to EMT is as legendary as his support for fundamental analysis (FA), as the foundation for smart investing.
Continue >>

