Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett has often warned lay investors about the pitfalls of short-term thinking and actively trading individual stocks based on ephemeral trends. Keeping with this theme, the Oracle of Omaha has repeatedly advised investors to consider passively managed index funds with low management fees and that track a broad range of fundamentally sound businesses. 

In Berkshire's 2013 annual shareholder letter, Buffett laid this strategy bare by noting that a mix of 10% cash in short-term government bonds and 90% in a low-cost S 500 index fund would likely deliver superior returns compared to most professional money managers who charge high fees. And Buffett has indeed followed his own advice in the construction of his holding company's stock portfolio. Here is a brief look at one brilliant Berkshire holding that most investors should buy without hesitation.

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Source Fool.com