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Buffett index fund investment second trick: only buy index funds with low cost rate.
An index fund has been selected. Which index fund should I choose to buy?
Buffett said in his letter to shareholders from 65438 to 0996: "I will give you an investment suggestion: most investors, including institutional investors and individual investors, will find out sooner or later that the best way to invest in stocks is to buy index funds with low cost ratio. Through index funds with low investment cost ratio, the net return on investment after deducting management fees will definitely exceed most investment experts. "
Buffett actually taught us the second trick of index fund investment: how to buy index funds. Buffett believes that the most important principle of buying index funds is to choose index funds with low cost and low rate. Like shopping, saving money means making money.
Usually, you have to save money when shopping, especially when buying index funds, because you usually spend little money when shopping, and the money you can save is actually very small, but when buying index funds with a little care, the money saved at one time may be enough for your family to eat in the first half of the year.
If you don't manage your money, money will ignore you. You should use the skill of saving money on weekdays to buy index funds. More savings means more income.
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