Buffett: Investors are Better Off Owning an S&P 500 Index Fund

nick-moccia

In last weekenda��s annual Berkshire Hathaway shareholder meeting Warren Buffet said some pretty entertaining things. Three of my favorites werea��

1. When addressing his addiction to junk food he said, a�?I have not seen evidence that convinces me that ita��ll be more likely to reach the age of 100 if I suddenly switch to water and broccoli.a�?

2. a�?It is possible for one person to live their life ONLY using products owned by Berkshire Hathaway.a�?

3. When addressing the subject of age (Buffett is 85 while Munger is 92) Buffett said, a�?Charlie is always the one who gets the girl and I have one explanation for that. As you know every mother in this country tells her daughter at an early age: If youa��re choosing between two very old and rich guys pick the one thata��s older.a�?

But one of the most interesting (at least for serious investors) was when he went on his predictable annual rant against Wall Street.warren-buffett

As thousands watched during the live webcast last Saturday, Buffett updated attendees on a bet he made back in 2006 with a little-known hedge fund group called ProtA�gA� Partners.

About ten years ago this hedge fund challenged Buffett to a bet that the overall returns of their five handpicked funds would outperform the market (the S&P 500 Index) over the next 10 years.

The results?

Buffett could hardly contain his smile when he revealed a chart showing the comparison since 2008. The S&P 500 Index Fund gained 65.7% vs just 21.9% for the hedge funda��s hand-picked investments.A�A� It wasna��t even close.

a�?Hiring Professional Money Managers is a Huge Minusa�?

Buffett went on to say, a�?Supposedly sophisticated people, generally richer people, hire consultants, and no consultant in the world is going to tell you a�?just buy an S&P index fund and sit for the next 50 years.a�� You dona��t get to be a consultant that way. And you certainly dona��t get an annual fee that way.a�?

Editora��s Note: PhD beats Buffett 329% to 169% since 2003a��without trading.

He went on to say that, a�?Investing in an S&P 500 Index fund gives you the best record of all American business which has done incredibly well over time. The net result of hiring professional management is a huge minus.

A little later Buffett sidekick and Berkshire Vice Chairman Charlie Munger chimed in with his own shameless pluga��

a�?Youa��re talking to a bunch of people who have solved their problem by buying Berkshire Hathaway,a�? he said. a�?That worked even better.a�?

a�?From 1965 through the end of last year, Berkshire shares have risen 1,598,284%, compared to the 11,355% return on the S&P 500.a�?

Munger then said, a�?There have been a few investment managers who have actually beaten the market over the long term, but ita��s a tiny group. Ita��s like looking for a needle in a haystack.a�?

Invest Like Warren Buffetta��and Take it to a Whole New Level

jbelmonte

One of those managers is Dr. Joseph Belmonte, creator of our brand new course, The Buffett and Beyond Stock Selection Method.A�

From 2003 through 2015 Dr. Belmontea��s portfolio has beaten Buffetta��s Berkshire Hathaway 329% to 169% WITHOUT trading or using risky strategies like options, leverage, penny stocks, or going short.

In fact, he owns many of the same global dominating brands that Buffett does, mostly S&P 500 household-name stocks, and simply rebalances the portfolio once at the end of each year.

In 2016 Dr. Belmontea��s Buffett and Beyond Dividend Growth and Income Portfolio is off to a great start beating the S&P 500 by more than 850%!A�A�

So if you like investing the Warren Buffett way congratulations!A� Youa��ve made a wise choice and are following one of the greatest investors of all time.

But if youa��d like to take what Buffett does to the next level, I encourage you to discover the little-known loophole used by Dr. Belmonte that has allowed him to beat Buffett at his own game since 2003.

Click here A�to see exactly how he does ita��and how you can too.

Nick Moccia
Publisher,
Weiss Educational Services