Oil tycoon, T. Boone Pickens, says, “Too many people say, ‘Ready? Aim! Aim! . . .’ But they never fire”.
“The goal of the nonprofessional [investor] should not be to pick winners ... but should rather be to own a cross section of businesses that, in aggregate, are bound to do well,” says Warren Buffet.Buffett, considered one of the most successful investors in the world, is in good company recommending low-cost index funds, like our Satrix 40 in South Africa. Index tracking funds are regularly recommended by some of the wealthiest people in the world, including Charles Schwab, John Bogle, and Charlie Munger. They all agree that, for the average person, low-cost index funds are the best way to invest.
The Little Book of Common Sense Investing quotes Buffet: "By periodically investing in an index fund, the know-nothing investor can actually out-perform most investment professionals".
"I know it doesn't earn much in the bank, but you'll sleep a lot better,” says Cuban.