THINK ABOUT 20-YEAR RETURNS, NOT THE ELECTION
Warren Buffett has a very important lesson for investors. You don't have to predict the outcome of every election to make money in the market.
Why?
💎Buffett said after the 2016 U.S. election that markets would be at higher levels in 10, 20, and 30 years. The years that have passed have shown how important this approach is.
💠In 2007, he made a 10-year bet with a hedge fund manager.
The bet was that a low-cost S&P 500 index fund would outperform the hedge fund portfolio.
Buffett won.
📊In my view, the ETF that stands out today based on the same logic is
$VOO.ETF Vanguard S&P 500 ETF
🔵Fund size: $1 trillion
🔵Expense ratio: 0.03%
🔵Dividend yield: 1.10%
🔵Latest price: $675.99
With a $10,000 investment, annual fund expenses are just $3. With a single trade, you get a stake in giant companies like $NVDA $AAPL $MSFT. This is really what I want to draw attention to here.
Elections change, presidents change, and interest rate policies change. Even the winds in the artificial intelligence sector can shift.
But the biggest advantage for a long-term investor is not having to change their portfolio in response to every development.
Of course, VOO can also fall. Your principal is not guaranteed.
Sometimes the smartest move in the market is to stop constantly searching for the next winner.
I'm curious. Do you think regularly accumulating VOO for 10 years makes more sense, or trying to find the best stocks every year?
Warren Buffett has a very important lesson for investors. You don't have to predict the outcome of every election to make money in the market.
Why?
💎Buffett said after the 2016 U.S. election that markets would be at higher levels in 10, 20, and 30 years. The years that have passed have shown how important this approach is.
💠In 2007, he made a 10-year bet with a hedge fund manager.
The bet was that a low-cost S&P 500 index fund would outperform the hedge fund portfolio.
Buffett won.
📊In my view, the ETF that stands out today based on the same logic is
$VOO.ETF Vanguard S&P 500 ETF
🔵Fund size: $1 trillion
🔵Expense ratio: 0.03%
🔵Dividend yield: 1.10%
🔵Latest price: $675.99
With a $10,000 investment, annual fund expenses are just $3. With a single trade, you get a stake in giant companies like $NVDA $AAPL $MSFT. This is really what I want to draw attention to here.
Elections change, presidents change, and interest rate policies change. Even the winds in the artificial intelligence sector can shift.
But the biggest advantage for a long-term investor is not having to change their portfolio in response to every development.
Of course, VOO can also fall. Your principal is not guaranteed.
Sometimes the smartest move in the market is to stop constantly searching for the next winner.
I'm curious. Do you think regularly accumulating VOO for 10 years makes more sense, or trying to find the best stocks every year?