In Picking Warren Buffettâ€™s Brain: Notes from a Novice, Tim Ferriss shares the notes he took at a recent convention for Berkshire Hathaway shareholders. It’s an interesting read and here’s the crux of it all:
How would you invest your first million dollars?
“Iâ€™d put it all in a low-cost index fund that tracks the S&P 500 [UK equiv: FTSE All-Share] and get back to workâ€¦”
Why do people struggle with this simple investing concept? Because people believe the experts, and when you pay the experts for advice… well, I’ll let Warren continue:
“No one will give you this advice [index funds] because no one gets paid for it.”
How about the best books to read “for investing and life”?
- Buffett: Chapters 8 and 20 in The Intelligent Investor.
- Munger (Vice-Chairman, Berkshire Hathaway): Anything by Ben Franklin.