> Warren Buffett Blog: Index Funds vs Active Management

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.