Why This Is My No. 1 Recommendation for New Investors
If you're thinking of investing in stocks, good for you! There are few more effective ways to build wealth over the long run. A certain kind of investment is ideal for beginners: index funds.
Even Warren Buffett likes them, and recommends them for many, if not most, investors. In his 2013 letter to Berkshire Hathaway shareholders, he said that in his will he directs how he wants the money he leaves for his wife to be invested: "Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard's.)" In a CNBC On the Money interview, Buffett noted that a low-cost S&P 500 index fund is the kind of investment "that makes the most sense practically all of the time."
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Source Fool.com
