Buffett says investors would be served just as well buying an S&P fund as his own company's stock

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Buffett says investors would be served just as well buying an S&P fund as his own company stock

Renowned stock picker Warren Buffett believes investors would be as well off simply buying the stock market as they would owning a stake in Berkshire Hathaway.

Buffett, the chairman and CEO of Berkshire with a personal worth north of $80 billion, has served as a model for a generation of investors with a frugal, bargain-based buying strategy. That's begotten both a no-frills investing philosophy as well as modest Midwestern lifestyle marked by regular trips to McDonald's, a taste for Coca-Cola and folksy business mantras.

Notwithstanding Buffett's value-hunting prowess and dramatic lifetime outperform, Berkshire has over the last 10 years underperformed the S&P 500 — the broad market index that tracks the largest stocks in the American economy. "I think it's the best investment — because most people don't know how to pick stocks. And — most of the time I don't know how to pick stocks," he told CNBC's Becky Quick earlier this year.

 

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