Warren Buffett is a big fan of index funds and in this episode, Dan explains why exactly that is. He defines what index funds are, the different types of them and how they compare to actively managed or selective funds. Dan also talks about beating the market and why this concept is not as effective as people think it is.
When it comes to index funds vs. actively managed funds, Dan draws the line clearly in the sand and shows how they really stack up and why index funds are preferable. He shows you how and where you should be investing in index funds and gives examples of how to diversify your investing to get the best outcome possible.
Listen to the Full Episode:
What You’ll Learn In Today’s Episode:
- About Dan’s upcoming trip to Montana and why he goes there yearly.
- Explaining what index are and if you should invest in them.
- Why Warren Buffett likes index funds and what that means to you.
- What it means to ‘beat the market’ and if it’s even plausible.
- The benefits of index funds and why they tend to work better.
- What an actively managed fund is and how it compares to index funds.
- The different kinds of index funds (large, small, value, international etc.) and how Dan recommends you use them.
- How to rebalance your investments and when to do it.
Ideas Worth Sharing:
[bctt tweet=”The way that they look to beat the market is by only buying those companies that they feel certain are going to out-perform the average. But here’s the reality, nobody knows who those companies are. – @DanCuprill” username=”DanCuprill”]
[bctt tweet=”The people who try to pick stocks actually perform worse than the index.- @DanCuprill” username=”DanCuprill”]
[bctt tweet=”The index fund is all about not trying to predict the future. It’s all about giving you market rates of return rather than beat market rates of return.- @DanCuprill” username=”DanCuprill”]
Resources In Today’s Episode:
- [Free Puzzle Solver] Download the Index Fund Worksheet Here
- Dan Cuprill: Email | Website | Facebook | Twitter | LinkedIn
- Schedule a call with Dan
- Your Money Jigsaw
- Warren Buffett
- Vanguard 500 Index Fund
- Procter & Gamble
- S&P 50 Index Fund
- The Investment Answer by Daniel Gordie and Gordon Murray