> Warren Buffett Blog

Monday, May 22, 2017

Index Funds vs Active Management

Costs really matter in investments. If returns are going to be seven or eight percent and you're paying one percent for fees that makes an enormous difference in how much money you're going to have in retirement.

Just remember, the person you're talking to, your fees are their income.

And it leaves your pocket and goes to them and you'd better get something for it. And you really don't get it in investment management. The record shows that the unmanaged index fund is going to do quite well over time and active investment as a group can't beat it.

Wednesday, May 17, 2017

Buy Index Funds specially when markets are down

The trick is not to pick the right company, the trick is to essentially buy all the big companies through the S&P 500 and to do it consistently and to do it in a very, very low cost way.

Consistently buy an S&P 500 low-cost index fund. I think it's the thing that makes the most sense practically all of the time.

Keep buying it through thick and thin, and especially through thin. The temptation when you see bad headlines in newspapers is to say, well, maybe I should skip a year or something. Just keep buying. American business is going to do fine over time, so you know the investment universe is going to do very well.

Warren Buffett buys more Apple, Airlines and sells IBM

Buffett recently disclosed that Berkshire sold off one-third of its 81 million IBM shares and bought about 133 million Apple shares.

The filing showed Berkshire added to its investments in American Airlines Group Inc. and Southwest Airlines Co. in the quarter. Its United Continental Holdings Inc. stake was unchanged, and its Delta Air Lines Inc. stake was reduced to 55 million from 60 million shares.

Berkshire held 49.3 million American shares at the end of March, up from 45.5 million. Its Southwest stake grew to 47.7 million from 43.2 million.

Buffett first disclosed his airline investments last fall, surprising many because he had long been critical of the industry. He has invested in all the major airlines now because he believes the industry is much healthier now and flying with planes at least 80 percent full most of the time.

Berkshire sold off nearly 9 million shares in Twenty-First Century Fox, the parent company of the 20th Century Fox movie studio and Fox News Channel, which has been hit by allegations of discrimination and harassment.

Tuesday, May 9, 2017

Berkshire Hathaway Shareholder Meeting 2017



Watch above the full 2017 Berkshire Hathaway Annual Shareholder meeting - Full Q&A

The video is just over 5 hours long.

Click here if the above video does not play.