Sometimes the simplest solutions are the best ones.
Warren Buffett has invested for decades using that philosophy. Buying high-quality businesses at good prices and holding them forever, letting their stories play out, has helped him become one of the most successful investors of all time. He also favors simplicity. He doesn’t own hundreds of stocks or dozens of ETFs. He just owns those he has conviction in.
This simplicity is also evident in his financial estate plans. In his 2013 letter to Berkshire Hathaway (BRKA +0.37%)(BRKB +0.45%) shareholders, he said this: “My advice to the trustee could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund.”
Buffett has long advocated that most people would be better off investing in the S&P 500 (^GSPC +0.56%) and calling it a day. It requires no trading or activity. It just…
