--- title: "Meaning & Key Takeaway of: A low-cost index fund is the most…" description: "\"A low-cost index fund is the most sensible equity investment for the great majority of investors. My mentor, Ben Graham, took this position many years ..." image: "https://sms4smile.com/quotes/i/d0b/warren-buffett-183_convince_a-low-cost-index-fund-is-the-most-sensib_715828.png" --- # A low-cost index fund is the most sensible equity… ![“A low-cost index fund is the most sensible equity investment for the great majority of investors. My mentor, Ben Graham, took this position many years ago, and everything I have seen since convinces me of its truth.” quote by Warren Buffett](https://sms4smile.com/quotes/i/d0b/warren-buffett-183_convince_a-low-cost-index-fund-is-the-most-sensib_715828.png) [Download](https://sms4smile.com/quotes/i/d0b/warren-buffett-183_convince_a-low-cost-index-fund-is-the-most-sensib_715828.png) [Open image](https://sms4smile.com/quotes/i/d0b/warren-buffett-183_convince_a-low-cost-index-fund-is-the-most-sensib_715828.png) > “A low-cost index fund is the most sensible equity investment for the great majority of investors. My mentor, Ben Graham, took this position many years ago, and everything I have seen since convinces me of its truth.” [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Investing in a broad, low‑cost index fund is the most rational choice for most people because it minimizes fees and captures overall market growth. **In simple terms:** Index funds are cheap, simple, and usually best for most investors. Key Takeaway Choose a low‑cost index fund for long‑term wealth building. Themes investing finance risk management simplicity long‑term planning Mood practical confident analytical Type advice financial investment When to use this quote - retirement savings - college funds - personal finance - portfolio construction - financial education Key Concepts efficient market hypothesis cost averaging diversification behavioral finance Questions to Reflect On - Do you understand the fee impact on returns? - How does market volatility affect your comfort with index investing? A Different Perspective Index funds may underperform in short‑term markets or for those seeking active strategies. ★ ★ ★ ★ ★ No ratings yet [Customer](https://sms4smile.com/quotes/about/customer/) [Equity](https://sms4smile.com/quotes/about/equity/) [Index funds](https://sms4smile.com/quotes/about/index-funds/) [Investing](https://sms4smile.com/quotes/about/investing/) [Investment](https://sms4smile.com/quotes/about/investment/) [Investors](https://sms4smile.com/quotes/about/investors/) [Justice](https://sms4smile.com/quotes/about/justice/) [Mentor](https://sms4smile.com/quotes/about/mentor/) [Sensible](https://sms4smile.com/quotes/about/sensible/) ## Related quotes > [Most investors, both institutional and individual, will find that the best way to own common stocks (shares') is through an index fund that charges…](https://sms4smile.com/quotes/warren-buffett/most-investors-both-institutional-and-individual-will-find-that-the/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [If you invested in a very low cost index fund - where you don't put the money in at one time, but average in…](https://sms4smile.com/quotes/warren-buffett/if-you-invested-in-a-very-low-cost-index-fund-where-you-don-t-put-the/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [... the best way to own common stocks is through an index fund.](https://sms4smile.com/quotes/warren-buffett/the-best-way-to-own-common-stocks-is-through-an-index-fund/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [The commission of the investment sins listed above is not limited to 'the little guy.' Huge institutional investors, viewed as a group, have long…](https://sms4smile.com/quotes/warren-buffett/the-commission-of-the-investment-sins-listed-above-is-not-limited-to/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [The best way in my view is to just buy a low-cost index fund and keep buying it regularly over time, because you'll be…](https://sms4smile.com/quotes/warren-buffett/the-best-way-in-my-view-is-to-just-buy-a-low-cost-index-fund-and-keep/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [By periodically investing in an index fund, the know-nothing investors can actually outperform most investment professionals.](https://sms4smile.com/quotes/warren-buffett/by-periodically-investing-in-an-index-fund-the-know-nothing-investors/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [Still, I figure we shouldn't' discourage fans of actively managed funds. With all their buying and selling, active investors ensure the market is reasonably…](https://sms4smile.com/quotes/paul-samuelson/still-i-figure-we-shouldn-t-discourage-fans-of-actively-managed-funds/) [Paul Samuelson](https://sms4smile.com/quotes/author/paul-samuelson/) > [The key aspect of an index fund is that many of them, not all of them, but many of them are extremely cheap.](https://sms4smile.com/quotes/william-j-bernstein/the-key-aspect-of-an-index-fund-is-that-many-of-them-not-all-of-them/) [William J. Bernstein](https://sms4smile.com/quotes/author/william-j-bernstein/) > [Our standard prescription for the know-nothing investor with a long-term time horizon is a no-load index fund. I think that works better than relying…](https://sms4smile.com/quotes/charlie-munger/our-standard-prescription-for-the-know-nothing-investor-with-a-long/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [Most investors would be better off in an index fund.](https://sms4smile.com/quotes/peter-lynch/most-investors-would-be-better-off-in-an-index-fund/) [Peter Lynch](https://sms4smile.com/quotes/author/peter-lynch/) > [A minuscule 4 percent of funds produce market-beating after-tax results with a scant 0.6 percent (annual) margin of gain. The 96 percent of funds…](https://sms4smile.com/quotes/david-f-swensen/a-minuscule-4-percent-of-funds-produce-market-beating-after-tax/) [David F. Swensen](https://sms4smile.com/quotes/author/david-f-swensen/) > [Assuming that the future is like the past, you can outperform 80 percent of your fellow investors over the next several decades by investing…](https://sms4smile.com/quotes/mark-hulbert/assuming-that-the-future-is-like-the-past-you-can-outperform-80/) Mark Hulbert > [After a lifetime of picking stocks, I have to admit that Bogle's arguments in favor of the index fund have me thinking of joining…](https://sms4smile.com/quotes/jim-cramer/after-a-lifetime-of-picking-stocks-i-have-to-admit-that-bogle-s/) [Jim Cramer](https://sms4smile.com/quotes/author/jim-cramer/) > [Experience conclusively shows that index-fund buyers are likely to obtain results exceeding those of the typical fund manager, whose large advisory fees and substantial…](https://sms4smile.com/quotes/burton-malkiel/experience-conclusively-shows-that-index-fund-buyers-are-likely-to/) [Burton Malkiel](https://sms4smile.com/quotes/author/burton-malkiel/) > [The simple index fund solution has been adopted as a cornerstone of investment strategy for many of the nation's pension plans operated by our…](https://sms4smile.com/quotes/david-f-swensen/the-simple-index-fund-solution-has-been-adopted-as-a-cornerstone-of/) [David F. Swensen](https://sms4smile.com/quotes/author/david-f-swensen/) ## More by Warren Buffett > [To invest successfully over a lifetime does not require a stratospheric IQ, unusual business insights, or inside information. What's needed is a sound intellectual…](https://sms4smile.com/quotes/warren-buffett/to-invest-successfully-over-a-lifetime-does-not-require-a/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [“Be fearful when others are greedy, and be greedy when others are fearful.”](https://sms4smile.com/quotes/warren-buffett/be-fearful-when-others-are-greedy-and-be-greedy-when-others-are/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [Making money isn't the backbone of our guiding purpose; it is the by-product of our guiding purpose.](https://sms4smile.com/quotes/warren-buffett/making-money-isn-t-the-backbone-of-our-guiding-purpose-it-is-the-by/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [We set no volume goals in our insurance business generally-and certainly not in reinsurance-as virtually any volume can be achieved if profitability standards are…](https://sms4smile.com/quotes/warren-buffett/we-set-no-volume-goals-in-our-insurance-business-generally-and/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [Everybody's got a different circle of competence. The important thing is not how big the circle is. The important thing is staying inside the…](https://sms4smile.com/quotes/warren-buffett/everybody-s-got-a-different-circle-of-competence-the-important-thing/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [It is better to point out your own mistakes than have somebody else do it.](https://sms4smile.com/quotes/warren-buffett/it-is-better-to-point-out-your-own-mistakes-than-have-somebody-else/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [I've read about all the sales today. If you're an auto dealer, you're feeling it. If you're a furniture retailer like we are, you're…](https://sms4smile.com/quotes/warren-buffett/i-ve-read-about-all-the-sales-today-if-you-re-an-auto-dealer-you-re/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [I was lucky enough to be born in a time and place where society values my talent, and gave me a good education to…](https://sms4smile.com/quotes/warren-buffett/i-was-lucky-enough-to-be-born-in-a-time-and-place-where-society/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [The most common cause of low prices is pessimism - some times pervasive, some times specific to a company or industry. We want to…](https://sms4smile.com/quotes/warren-buffett/the-most-common-cause-of-low-prices-is-pessimism-some-times-pervasive/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [The reaction of weak management to weak operations is often weak accounting.](https://sms4smile.com/quotes/warren-buffett/the-reaction-of-weak-management-to-weak-operations-is-often-weak/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [What you really want to do in investments is figure out what's important and knowable. If it's unimportant or unknowable you forget about it.](https://sms4smile.com/quotes/warren-buffett/what-you-really-want-to-do-in-investments-is-figure-out-what-s/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [I don't measure my life by the money I've made. Other people might, but certainly don't.](https://sms4smile.com/quotes/warren-buffett/i-don-t-measure-my-life-by-the-money-i-ve-made-other-people-might-but/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [I mean the truth is, I've never had it so good in terms of taxes. I am paying the lowest tax rate that I've…](https://sms4smile.com/quotes/warren-buffett/i-mean-the-truth-is-i-ve-never-had-it-so-good-in-terms-of-taxes-i-am/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the…](https://sms4smile.com/quotes/warren-buffett/the-most-important-quality-for-an-investor-is-temperament-not/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [Investors, of course, can, by their own behavior make stock ownership highly risky. And many do. Active trading, attempts to "time" market movements, inadequate…](https://sms4smile.com/quotes/warren-buffett/investors-of-course-can-by-their-own-behavior-make-stock-ownership/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) [Explore all 984 Warren Buffett quotes ](https://sms4smile.com/quotes/author/warren-buffett/) ## More Convince quotes > [“Sometimes we want something to be true so badly that we convince ourselves that it is true.”](https://sms4smile.com/quotes/wally-lamb/sometimes-we-want-something-to-be-true-so-badly-that-we-convince/) [Wally Lamb](https://sms4smile.com/quotes/author/wally-lamb/) > [The privilege of prayer to me is one of the most cherished possessions, because faith and experience alike convince me that God himself sees…](https://sms4smile.com/quotes/wilfred-grenfell/the-privilege-of-prayer-to-me-is-one-of-the-most-cherished/) [Wilfred Grenfell](https://sms4smile.com/quotes/author/wilfred-grenfell/) > [Jesus never met a disease he could not cure, a birth defect he could not reverse, a demon he could not exorcise. But he…](https://sms4smile.com/quotes/philip-yancey/jesus-never-met-a-disease-he-could-not-cure-a-birth-defect-he-could/) [Philip Yancey](https://sms4smile.com/quotes/author/philip-yancey/) > [The first duty of a wise advocate is to convince his opponents that he understands their arguments, and sympathies with their just feelings.](https://sms4smile.com/quotes/samuel-taylor-coleridge/the-first-duty-of-a-wise-advocate-is-to-convince-his-opponents-that/) [Samuel Taylor Coleridge](https://sms4smile.com/quotes/author/samuel-taylor-coleridge/) > [Once you convince people that they're victims, you really own them because you've just told them that whatever problems they have in life, it's…](https://sms4smile.com/quotes/rush-limbaugh/once-you-convince-people-that-they-re-victims-you-really-own-them/) [Rush Limbaugh](https://sms4smile.com/quotes/author/rush-limbaugh/) > [The people on the QVC shopping channel convince me that life is worth living. They see the good in everything. People who go to…](https://sms4smile.com/quotes/johnny-vegas/the-people-on-the-qvc-shopping-channel-convince-me-that-life-is-worth/) [Johnny Vegas](https://sms4smile.com/quotes/author/johnny-vegas/) > [“What can I say to convince you the Houses of Parliament dissolve night after night to become the fluid dream of the Thames? I…](https://sms4smile.com/quotes/lisel-mueller/what-can-i-say-to-convince-you-the-houses-of-parliament-dissolve/) [Lisel Mueller](https://sms4smile.com/quotes/author/lisel-mueller/) > [Human beings have the incredible capacity for denial. I think they do. And although it's really hard to believe, I have my doubts. But…](https://sms4smile.com/quotes/david-byrne/human-beings-have-the-incredible-capacity-for-denial-i-think-they-do/) [David Byrne](https://sms4smile.com/quotes/author/david-byrne/) > [“If you can convince yourself, you can convince the other fellow,”](https://sms4smile.com/quotes/tim-sanders/if-you-can-convince-yourself-you-can-convince-the-other-fellow/) [Tim Sanders](https://sms4smile.com/quotes/author/tim-sanders/) > [Don't lie to yourself about what you can't or can achieve. Convince yourself on a realistic level that you can do it.](https://sms4smile.com/quotes/anonymous/don-t-lie-to-yourself-about-what-you-can-t-or-can-achieve-convince/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [“Don't ever let anyone convince you that your imagination is wrong.”](https://sms4smile.com/quotes/giuseppe-bianco/don-t-ever-let-anyone-convince-you-that-your-imagination-is-wrong/) [Giuseppe Bianco](https://sms4smile.com/quotes/author/giuseppe-bianco/) > [It's hard to convince your agents and managers to do theater, because it's not as financially rewarding and it takes up a lot of…](https://sms4smile.com/quotes/simon-helberg/it-s-hard-to-convince-your-agents-and-managers-to-do-theater-because/) [Simon Helberg](https://sms4smile.com/quotes/author/simon-helberg/) > [I guess that is the strange part of the human brain that people have studied for eons - is hatred and self-hatred. You can…](https://sms4smile.com/quotes/trevor-noah/i-guess-that-is-the-strange-part-of-the-human-brain-that-people-have/) [Trevor Noah](https://sms4smile.com/quotes/author/trevor-noah/) > [I knew I shouldn't like him cause I know it's not working, and everybody tells me that, and I convince myself I don't... and…](https://sms4smile.com/quotes/bernajoy-vaal/i-knew-i-shouldn-t-like-him-cause-i-know-it-s-not-working-and/) [Bernajoy Vaal](https://sms4smile.com/quotes/author/bernajoy-vaal/) > [The statesmen will invent cheap lies, putting the blame upon the nation that is attacked, and every man will be glad of those conscience-soothing…](https://sms4smile.com/quotes/mark-twain/the-statesmen-will-invent-cheap-lies-putting-the-blame-upon-the/) [Mark Twain](https://sms4smile.com/quotes/author/mark-twain/) Browse all 1,431 Convince quotes ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "A low-cost index fund is the most sensible equity investment for the great majority of investors. 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