Warren Buffett has some advice for average people who would like to invest in stock market--don’t wait to get started. To build wealth, investors should “consistently buy an S&P 500 low-cost index fund,” he had said in older video that has resurfaced on Instagram. “Keep buying it through thick and thin, and especially through thin.”
That’s the advice that the investing titan shared at a Berkshire Hathaway’s annual shareholders meeting when asked how to make $30 billion, which was roughly his net worth at the time, CNBC had reported.
The investing titan—whose fortune has since grown to more than $120 billion—said that compound interest is an investor’s best friend. Buffett also compared building wealth through interest to rolling a snowball down a hill.
“Start early,” he said. “I started building this little snowball at the top of a very long hill. The trick to have a very long hill is either starting very young or living to be very old.”
Another piece of advice that Warren Buffett shared was: “Consistently buy an S&P 500 low-cost index fund. I think it’s the thing that makes the most sense practically all of the time.”
Also sharing his views on the worst investment advice, Buffett had said, "The one thing I will tell you is that the worst investment that you can have is cash. Cash is going to become worth less over time, but good businesses are going to become worth more over time."
So, in Buffett's words, the best way to go about it would be "to find a good business and stick with it."
Read more: Warren Buffett’s final charity lunch auction fetches record $19 million bid
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