The Index Fund is known as "shares" in Buffett.

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The Index Fund is known as "shares" in Buffett.

2021-11-28 18:06:27 37 ℃

That is a global investment tycoon Buffett, publicly recommending an index fund? After all, most investors will not openly recommend which investment products.

Stocks can make money but no investors, it is recommended that people do not understand investment, and Buffett's father did this, and believe that ordinary people do not understand investment can also invest index funds.

What is the magic and advantage of the index fund that makes Buffett recommend it?

I personally think that because of several characteristics of the fund, I will make Buffett more enthusiastically like an index fund.

The first index fund reduces self-risk by adequate dispersion, this is the most important, because we understand the liquor index, new energy index, STU 500 index, NASDAQ 100 index, and the GEM 50 index.

What is the meaning of these prefixed 500 or 100 and the field? Is it just called this name? Obviously not.

If it is a liquor index, the fund will all buy a liquor enterprise in all markets. In this case, only an industry is not a collective to death. According to a certain proportion of this industry, you can earn money.

For example, the new energy car has been fried in particular fire, if you have a new energy brand risk, you must be bigger than many. If the new energy is profitable, then you can say that it is zero risk.

This index has accumulated a book, accumulating all the author's investment experience, which allows everyone to be more stable on the road of investment fund.

The second is that the relative to other fund index funds is relatively low rate, which should be an important advantage of an index fund.

Since the index fund takes a investment strategy of tracking index, the fund manager does not need to spend a lot of time to choose stock, bonds and other investment tools and the time to buy it.

Third reasons can also be seen that the index fund is less affected by artificial factors, and all failures of failure are treated because of human error operations, and the index fund's full tracking index will generally not operate frequently, so people are the least of.