“Both large and small investors should stick with low-cost index funds,” according to Berkshire Hathaway Chairman Warren Buffett. In his annual shareholder letter, the Oracle of Omaha reminded investors something they probably know intuitively, “When trillions of dollars are managed by Wall Streeters charging high fees, it will usually be the managers who reap outsized profits, not the clients.” This is not a new message for Buffett. Three years ago, he provided similar advice to the trustees of his estate: “Put 10 percent of the cash in short-term government bonds and 90 percent in a very low-cost S&P 500 index fund…I believe the trust's long-term results from this policy will be superior to those attained by most investors…who employ high-fee managers.”
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