Warren Buffett isn’t known for overcomplicating things—and when it comes to investing, he doesn’t think you should either.
At the 2008 Berkshire Hathaway annual shareholders meeting, Buffett was asked, “If you were 30 years old again and had your first million in the bank, how would you invest it assuming you’re not a full-time investor, you have another full-time job, you can cover your expenses with other savings for about 18 months, and you have no dependents.”
“I’ll be very simple,” he replied. “Under the conditions you name, I’d probably have it all in a very low-cost index fund… somebody I knew was reliable, somebody where the cost was low.” Then came the part many people overlook: “I’d forget it and go back to work.”
Don’t Miss:
That part isn’t just practical—it’s the whole philosophy. Buffett wasn’t advising someone to watch the markets or make investing a second job. He was saying to get on with life. Keep earning. Let compound interest take the wheel. With steady income and decades ahead, the real advantage isn’t perfect timing—it’s not touching the money at all. When the plan is simple and automatic, the hardest part is knowing when to leave it alone.
Buffett has long maintained that most investors shouldn’t try to beat the market. It’s not about intelligence—it’s about realism. He doesn’t just invest in companies—he buys entire businesses, with full access to management, operations, and long-term strategy. That’s not something the average investor can replicate.
Instead, he recommends simplicity and discipline. A low-cost index fund—like one that tracks the S&P 500—spreads your money across hundreds of large U.S. companies. There’s no guesswork involved. You’re not betting on the next Apple or Amazon. You’re owning a slice of the entire market and letting it grow over time.
Trending: This ETF issuer isn’t chasing the index — it’s building tools for income, leverage, and conviction
At Berkshire’s 2020 shareholders meeting, Buffett doubled down on the same principle. “I don’t think most people are in a position to pick single stocks,” he said. “A few [are], maybe, but on balance, I think people are much better off buying a cross-section of America and just forgetting about it.”
