One Simple Investment Strategy Normal People Can Use (Not About Investing in Yourself)

Ron Markley
2 min readJan 29, 2024

Almost 90% of investors face the same problem:

They can’t make money.

Because:

  • They don’t pick good stocks.
  • They try to guess what the market will do.
  • They can’t wait.

But, the 4th richest man in the world, Warren Buffett, gave me a simple solution.

You don’t need to:

  • Pick stocks by yourself.
  • Understand complicated economic issues.
  • Have a lot of financial knowledge.

Yep, it’s easier than choosing what to watch on Netflix tonight!

It is the S&P 500.

S&P 500 Overall Return
Image from Macrotrends, captured by the author.

The Proof

Back then, in 2007, Warren Buffett made a really interesting bet. He said that a simple S&P 500 index fund would do better than special hedge funds picked by experts.

Buffett chose the Vanguard 500 Index Fund Admiral Shares (VFIAX) for his side of the bet.

A hedge fund manager named Ted Seides from a group called Protégé Partners took the bet against Buffett.

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