Billionaire Warren Buffett Owns ETFs, Should You?

My new book Exchange-Traded Funds For Beginners has just been released and In it you’ll learn why millions of investors are building their wealth every day with these stock-like funds, or ETFs.
Once only available to the big institutions on Wall Street, these special funds were created as a tool just for themselves. But since those early days, the number of ETFs has grown faster than any other product as they’ve become available to the average investor. And for good reason.
LEGENDARY INVESTOR WARREN BUFFET OWNS ETFS
For example, Warren Buffet, legendary investor and 7th richest person in the world, has often recommended that most retail investors allocate much of their stock portfolio to an S&P 500 ETF instead of taking the risk of picking individual stocks.
And in fact, he owns two ETFs in his portfolio that fill the bill. We explain both of them in simple terms in the book and tell you their specific names and trading symbols on pages 42 and 44.
And on a more personal note, Warren says when he passes that in his will, his advice to the trustee is simple. And that is to place 90% of his wife’s inheritance into just one investment like these.
Here’s his quote. “My advice to the trustee could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund.” And Warren recommends using Vanguard’s S&P 500 index fund.
So we tell you the name and symbol of the Vanguard S&P 500 Index Fund ETF that fills this bill on page 99. And it’s clearly a quality ETF with a Morningstar Rating of 5 out of 5 stars.
We don’t know how big of an inheritance Warren is leaving, but with a net worth today of $143.9 billion, he clearly favors ETF-like investing for his wife’s future.
Now we’re not saying anyone is going to make billions of dollars, or anywhere close to that, by investing in ETFs. After all, this is a beginner’s book, and Warren has decades of expertise and other investments to draw on.
But his ETF ownership and directed wife’s inheritance are certainly something to ponder.
FORGET THE NEEDLE, BUY THE WHOLE HAYSTACK
But Warren Buffet aside, and back to us mere mortals, ETFs are not just for the wealthy. You will also learn how they offer a unique advantage to beginning investors with little money to start off with. Because ETFs allow them to invest a small amount of money in many companies’ stocks all at once.
Just buying one share of an ETF can give them exposure to a hundred or more different companies stocks. So they can afford to get in the game with less risk than just owning a few individual stocks at the very start.
Because ETFs have diversification built right into them. So investors are not putting all their eggs in one basket. In other words, forget the needle, buy the whole haystack. And ETFs make this possible for all investors.
THEY’RE CHEAP
Additionally, many ETFs are quite cheap, with low fees, so more of your money works for you. Because there’s a big difference between fund expenses.
Mutual fund expenses have averaged as high as .71% in the recent past. But the average expense ratio to invest in an ETF was just .18%. And some are Incredibly cheap, with fees as low as .03%. That’s almost no charge.
And many mutual funds have minimum purchases like $3000, which is tough for some beginning investors. But ETFs do not. As we mentioned, you can buy just one share if you like. Or more.
THEY’RE EASY
Also, and this is one of my favorite things, they are fast and easy to trade because they trade just like stocks. That is to say, you can go to your online stock account, put in the ETF symbol (just like you would a stock) enter the number of shares, and press the buy button. And boom, you own the ETF shares, typically within seconds.
Contrast that to many mutual funds where you put in your order, and it isn’t executed until the next day. That’s because they have to wait until the market closes so they can calculate the new share price.
I don’t know about you, but I don’t like to wait around when I buy a stock or fund. I want to place my order and see it in my stock account right now, not have to wait and follow up tomorrow to see if I got it.
Or here’s another drawback. If you have different funds with different mutual fund providers, you will need a separate account with each provider. So you have many different accounts to deal with.
So hmmm… kinda awkward.
But with ETFs, you can just buy instantly through you stock account and be done with it. Because as we said, ETFs trade like a stock. And you can do all of this in just your one stock account. So no multiple accounts to mess with.
AND YOU’LL LEARN MUCH MORE
So those are just some of the highlights. And you’ll get many more insights in the book, such as…
· The basics of ETF investing.
· How to get started.
· How to buy and sell ETFs.
· How to build a simple low-cost ETF portfolio.
· Three key strategies to protect your ETF investments from big losses.
· And many more valuable tips and resources.
READERS HAVE GIVEN IT A FIVE STAR RATING
Although just published, the book has been well received, and early readers have already given it 5-Star ratings and excellent reviews. For example, here’s what Mike of New Jersey says…
“… I have learned so much from this ‘ETF Fund Investing for Beginners’ book, that I have purchased a book for each of my three kids who are now young adults beginning their investing careers for their family and their future. Mike-NJ.”
Or John of Orlando when he writes…
“I loved this book. It was very simple and easy to read, and I learned a lot about ETFs and investing in general. It was very complete, and the author explained everything in simple, plain English like in his other books.
Also, his sample portfolios and how to keep them in balance to grow a retirement account was very helpful.
This is simply an outstanding book, and a fun read as well.”
CONCLUSION
So to summarize, many investors, including billionaire Warren Buffet, are increasing their wealth with ETFs. And ETFs are cheap, fast, and easy to buy and sell just like stocks.
Additionally, by the end of this book, you will be able to buy your first ETF. And you will know the simple steps to build your wealth with less risk in a simple low-cost ETF portfolio. And start on your path to a more secure financial future.
If that sounds interesting, you can preview the book for free right here.
And start on your path to a more secure financial future.
To your health and prosperity – John
P.S. NOTE THERE ARE MANY KINDS OF ETFs: There are ETFs for many investment types, not just stocks. There are ETFs for bonds, precious metals, commodities and many other investments.
But we focus just on stock-based ETFs for starters, just to keep it simple and get the basics down first. Then the book moves on to the other investment types once you’re on a solid footing.




