President Barack Obama and Warren Buffett in the Oval Office, July 14, 2010
President Barack Obama and Warren Buffett in the Oval Office, July 14, 2010

 

Who wouldn’t want to invest like Warren Buffett?

His investments have long beaten the performance of the S&P 500. Plenty of mutual fund and hedge fund managers have tried to do the same. But most fail. That’s why mere mortals should stick to low-cost index funds.

Some people, however, enjoy the added risk of trying to beat the market. If you’re one of them, let me offer a suggestion: There is a simple method with a market-beating record. It doesn’t win every year or even every decade. But its long-term record has beaten the U.S. market index. It takes about ten minutes a year, combining two investment styles from Warren Buffett’s biggest mentors. 

Photo: Pete Souza [Public domain], via Wikimedia Commons

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