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Investing in index funds or individual stocks? Warren Buffett’s advice

Warren Buffett votes against trading individual stocks and cheers for picking index funds instead. Warren Buffett is probably the most famou…

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Investing in index funds or individual stocks? Warren Buffett’s advice

Warren Buffett is probably the most famous figure in the history of financial markets and investments. He became an investor at the age of 11 and developed his personal approach to trading making him the owner of numerous companies listed on the Fortune 500. Warren Buffett’s current net worth easily exceeds 100 billion US dollars which means that he is the 9th richest person alive in the world. 

Due to his tremendous success in investing and trading, many finance enthusiasts look forward to learning from Buffett. He is famous for providing numerous tips and recommendations on how to invest in various financial markets. He is one of the most successful stock traders, however, his investment strategy is quite a surprise to many. Warren Buffett votes against trading individual stocks and cheers for picking index funds instead. 

Buffett’s advice to his wife

Warren Buffett released his annual letter to shareholders in 2013 where he provides guidelines on how to manage his estate for his trustee. He puts forward clear instructions on the investment strategy that his wife should follow in case of her husband’s death. According to him, a trustee should invest only 10 percent of the existing cash holdings in short-term government bonds and the rest of it in the extremely low-cost S&P 500 index fund. Warren Buffett actively advocates for the strategy and believes that it is superior to all the pension funds or highly experienced investors who trade otherwise.  Furthermore, it was not a one-time strategy suggestion from Warren Buffett. Warren Buffet who is also known for a position as a Forex trader, advises newbie investors to get more information about Forex trading basics for beginners, which allows newcomers to get familiar with the basic things in FX trading and generate strategy. He kept on repeating the same advice throughout the time. In 2016, he expressed the same exact opinion. Whenever someone asks him how an average investor acquires his or her wealth through stock trading he responds that a person should invest in an S&P index fund and wait for 50 years. 

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Ironically, Warren Buffett does not recommend holding a single stock even if it is Berkshire Hathaway, his own company. He is a strong advocate of index fund-rich investment portfolios, especially the S&P mutual fund. Buffet believes that the trading stock index, whether it is S&P 500 or Fidelity 500 index fund, is much smarter than investing in individual stocks of the top-performing companies in the world. Apart from this advice, Buffett has his own view on value investing, which we will cover in the below paragraph. 

Also Read: Stock Market Tips and Best Stocks To Buy In 2021

Value investing and portfolio structures

If you are a fan of stock trading and are not eager to invest in index funds then follow the value investment strategy of Warren Buffett and his company. Despite the fact that Buffett personally believes in the superiority of mutual funds over individual stocks, his company Berkshire Hathaway has been developing a portfolio of billions of dollars of individual stock investments. However, all stock acquisitions follow value investment principles. 

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Value investing means that an investor should focus on the intrinsic value of the company instead of watching the fluctuations of stock prices on the market and hence invest in competitive companies with higher true value. This trading philosophy was first developed by the mentor and instructor of Warren Buffett – Benjamin Graham. This value investment formula was firmly supported by Berkshire Hathaway. That is why you will observe the stocks of Wells Fargo, Coca-Cola, and American Express within the stock portfolio of the company. 

However, one thing should be considered when implementing value investing in your daily trading life. In contrast to Berkshire Hathaway, which is a huge corporation able to make massive investments, individual investors have lesser capital and thus fewer opportunities to mimic the success of Buffett’s investments. Thus it is important to assess the risk profile for your trades to estimate how much of the losses you can absorb financially. In the long run, Buffett’s advice on both index fund trading and value investment will most probably be profitable, however, it might scare away short-term traders. 

For more insights on value investment strategy, Kailash Concepts, an investment research firm in the US, shared their view on value investing vs momentum investing which you might find interesting.

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For low-budget investors, the best approach is to leave aside high-value company stocks and instead focus on mutual funds or short-term government bonds as Warren Buffett suggested multiple times. Some of the best starting points are Vanguard S&P ETF or ticker symbol VFIAX. The minimum investment requirements for these assets would be below 3,000 US dollars making it way more affordable than the rest of the instruments within the same class. 

Manvendra Chaudhary, with over 5 years of professional experience as CEO of Unique News and Megalent Marketing, shares insights on life, business, and health for your success.

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Jeff Bezos Lookalike Cagdas Halicilar Enjoys Lavish Lifestyle By Impersonating The Billionaire 

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Jeff Bezos Lookalike Cagdas Halicilar Enjoys Lavish Lifestyle By Impersonating The Billionaire 

A 46-year-old German man, Cagdas Halicilar, is currently the talk of the town as he has emerged on the internet as Jeff Bezos’ lookalike. 

Thus, Cagdas Halicilar has transformed his profession into a professional Jeff Bezos doppleganger from an electrician. 

The 46-year-old reveals that now he lives an opulent lifestyle as an entrepreneur. 

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Cagdas Halicilar was often told by his family and friends that his looks were similar to those of a billionaire. However, only when he saw Jeff Bezos’ picture, did he understand what people around him meant. 

The New York Post reported that Halicilar dreamed of becoming a successful business executive. With him founding CB Transporte, a transport company, he lived his dream. 

After accepting his resemblance to Jeff Bezos, Cagdas Halicilar enrolled himself at a doppelgänger agency. 

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Cagdas Halicilar Gained Popularity by Being Jeff Bezos’ Lookalike

Most of the time, he dressed up in casual attire which made him look more like a billionaire, as Jeff Bezos also dressed up casually. 

Halicilar added, “It doesn’t matter whether I’m wearing a suit or wearing jeans and a polo shirt.”

He added how it requires a bit of effort to maintain his appearance like a billionaire. He shaves his head and applies Nivea cream regularly. The German doppleganger added that he has been doing the same for more than ten years now. 

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The 46-year-old has gained a lot of popularity and recognition over the years for his work as Jeff Bezos’s doppelgänger. His spouse complained that people often stopped him and asked for selfies on the street. 

In the “King of Stonks,” the German Netflix miniseries, he also had a guest spot. 

When in Seattle once, Cagdas Halicilar strolled through the Amazon campus. Surprisingly, Amazon employees thought that he was Jeff Bezos, reported TimesNow.

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He said,

“All the Amazon employees came to me, wanted selfies and thanked me for being proud to work at Amazon.” 

Furthermore, he added,

“My wish is to drink a whiskey with Jeff Bezos on his yacht. He is just as much of a yacht fanatic as I am.”

Also Read: Twitch Streamer Maya Higa Opens Up About Horrific Stalker Incident During Recent Livestream

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Lawsuit Claims Cinemark Shortchanged Customers on Sold Beverages

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Lawsuit Claims Cinemark Shortchanged Customers on Sold Beverages

A North Texas movie-goer has filed a lawsuit over Plano-based Cinemark drink sizes.

The lawsuit alleges that the movie theater chain fleeced its customers by shorting beverages sold in the chain’s canteens.

The chain loudly advertised that the 24-ounce container is a better deal, claiming consumers will get more for less price, while the reality is that Cinemark swindles customers by shortchanging them on sales for the 24-ounce beverage cup.

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Cinemark Accused of Shortchanging Customers on Beverage Sales

The proposed class action lawsuit has been filed in a Texas federal court and it indicts the movie.

The lawsuit further details how consumers got only 22 ounces of liquid, which is the maximum that can be filled in Cinemark’s 24-ounce cups.

It is alleged that the deception was part of a deliberate packaging and pricing practice.

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Also Read: California mother files lawsuit against Tesla after her 2-year-old child starts Model X and runs over her

Theaters pay almost 50% of the revenue generated by ticket sales to the studios but keep all the profits generated by the sales of food and beverage.

Increased competition has pushed the chain to offer concessions and bonuses, and this helped Cinemark in 2023 to record its highest concession sales of all time.

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However, the lawsuit alleges that Cinemark dupes its customers by shortchanging them on sales for the 24-ounce beverage cup instead of the 20-ounce beverage cup.

The reality is that consumers pay less for a 20-ounce cup, which is also a better deal than buying a 24-ounce beverage cup.

The complaint stated,

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“The size of the container in relation to the actual volume of the product contained in it was intended to mislead the consumer into believing the consumer was getting more of the product than what was in the container by a twelfth.”

The lawsuit was brought by Texas resident Shane Waldrop, who purchased a 24-ounce beverage cup in February which cost him $8.80 before tax.

However, on closer look, he realized that the cup was not large enough to hold 24 ounces. This was confirmed later when Shane took the cup home and found that it could contain only 22 ounces of liquid.

Thus, the consumer was duped 2 ounces for every cup he bought.

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The lawsuit charged the movie theater chain with neglectful falsification, deception, unjust profiteering, and a violation of Texas’ Deceptive Trade Practices Act and asked for a court order to halt such practices.

Waldrop is seeking compensatory damages and also demanded a jury trial over the claims.

Also Read: Johnson Controls subsidiary Tyco Fire Products to pay $750 mn to settle ‘forever chemicals’ lawsuit

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Mukesh Ambani’s 67th Birthday: How He Built The Reliance Industries

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Mukesh Ambani Birthday

It is Mukesh Ambani’s 67th birthday, and today we will try to get to know about the incredible journey of this man who, with sheer determination and grit, has created one of the biggest conglomerates in the world.

Reliance Industries, which passed into his hands in the 2000s, grew at a pace which was phenomenal.

Born on April 19 to Dhirubhai Ambani and Kokilaben in Aden, Yemen, where his father was based before moving back to India.

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Reliance Industries was already a big company, but its growth after Mukesh Ambani took on the reins was phenomenal.

With astute business acumen and strategic vision, Ambani has propelled Reliance Industries to dizzying heights, making it one of India’s most powerful empires.

It was under his stewardship that Reliance Industries diversified from being a petroleum company to enter other fields like Telecommunication and the Aerospace industry.

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The 5G revolution, which has swept the country, is largely due to the efforts of Mukesh Ambani and his company Jio. Jio offered high-speed and cheap internet services to the farthest corners of the company, and this helped it to capture a major chunk of the telecommunication sector. Today the nation’s population is using internet data in an unprecedented way.

Another diversification move was the entry of Reliance Industries into retail, energy, petrochemicals, and media. Reliance also acquired and invested in Future Group’s retail assets, as well as the creation of JioMart, an e-commerce venture.

Reliance also entered into a partnership with the Indian media company Viacom18 and the American entertainment giant Disney to create a joint venture, valued at $8.5 billion. The venture also gave exclusive rights to Reliance to distribute Disney productions in India.

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It is his futuristic vision which catalyzed Reliance Industries to invest heavily in the renewable energy sector. The company has built solar and wind energy farms and is contributing in a big way to help India achieve its renewable energy targets while lowering carbon emissions and environmental impact.

Again, it is his futuristic views which made him create the Jio Institute, which is a truly world-class educational institution dedicated to cutting-edge research and technical improvement. The stated motto of the institute is to help develop future leaders and innovators who will help the country grow to become a developed nation in the coming decades.

The phenomenal growth and success of Reliance Industry can be attributed to Mukesh’s keen sense to anticipate market trends, evolve as per changing consumer preferences, seize emerging possibilities, and produce products and services of the highest quality.

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As of April 19, 2024, according to Forbes, Mukesh Ambani’s net worth is to the tune of $115.8 billion, and he is ranked one of the top 10 wealthiest people in the world on Forbes magazine’s annual list of billionaires in 2021, 2022, and 2023.

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