Seth Klarman has some words of advice for regular investors who are following the guidance of Warren Buffett, and others, and are putting their money into stock index funds. "You don't want to go into index funds, experience a bad market and then bail out," the founder of the Baupost Group said Tuesday on CNBC's " Squawk Box " in a rare interview. "That's what investors tend to do.
In other words, when using index funds, you have to stay in the markets to capture the upside when it comes. The notable value investor also gave one other word of caution on index funds. Even he agreed they were a good vehicle for the unsophisticated investor with their focus on low costs. .SPX ALL mountain S & P 500 long term "I think one of the critical things about the long-term return for investing is that it depends on the entry price.