Active management Quote by Warren Buffett
“... the best way to own common stocks is through an index fund.”
About This Quote
Source Letter: Berkshire Hathaway Annual Shareholder Letter, 2013
Investing in a diversified index fund is the simplest, most reliable way for most people to grow wealth.
In simple terms: Buy an index fund for steady, low‑effort returns.
Prefer passive investing.
Themes
Mood
Type
When to use this quote
- retirement planning
- college savings
- personal finance advice
Key Concepts
Questions to Reflect On
- How does diversification reduce risk?
- What are the fees associated with index funds?
Index funds still subject to market downturns.