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Its Low Cost
Buffett doesnt slam fund managers for being ignorant or poor stock pickers.
Rather, he condemns the fees that the fund industry charges.
That means for every $1,000 you put into the fund, youre paying just 30 cents in fees.
Even on a $1 million portfolio, your annual expenses would only amount to $300.
This gives you a lot of bang for your buck for a single investment.
Meanwhile, youre diversified acrossevery major industryin America.
However, there is one caveat to consider when owning the S&P 500.
Although it does indeed offer exposure to hundreds of stocks, the index is market-cap-weighted.
This means that less than 5% of the whole index is responsible for nearly half of its performance.
The babies being born in America today are the luckiest crop in history.
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