Jakarta, CNBC Indonesia – A seasoned investor from the United States (US) Warren Buffett said that investing is a simple game. Therefore, according to him, this activity can be done without the need for a financial advisor on Wall Street.
At Berkshire Hathaway’s annual shareholder meeting, Buffett also said financial advisors only caught the ‘crumbs’ in economic activity.
“You can have monkeys throw darts and manage management fees and everything. I’d bet on monkeys (rather than financial advisors),” Buffett said as quoted by CNBC International, Tuesday (3/5/2022).
The CEO of Berkshire Hathaway pointed out that since 1941, the Dow Jones Industrial Average has increased from $100 to over $30,000. Meanwhile, he said, people just need to put their money into “American business” and let it grow.
“It’s amazing how hard it is for people to make a simple game. But of course, if they tell everyone how simple the game is, 90% of their income will be lost,” he said.
Buffett recommends that investors put their money in low-cost indexes, where investments are automatically diversified, such as the S&P 500. According to him, a diversified index is the right choice for those looking to set up retirement savings.