Warren Buffett's Simple Index Investing Advice And Why It Will Be Resisted

     Warren Buffett gave some advice recently that if followed, will save a whole lot of people time, money, and aggravation. Some people, not liking his politics or something else, tried discrediting his advice. But his advice stands on its own, and it is time proven.

      He advised people to invest in low cost broad based index funds. Over time, this has proven to be a wise strategy. If enough people follow this simple advice, it will mean the end of many jobs, such as consultants, advisors, brokers, and others that want people to believe that they can beat the indexes. A few can, but most cannot, so unless someone has a lucky crystal ball, why even try?

Very few beat the indexes over time.

       The simple advice means there is no need for those not interested in business to watch business cable stations, or listen to fast talking hustlers that promise easy riches, or read financial magazines and newspapers that they may find uninteresting. What would be especially good is no more business for shysters that promise riches but only provide ruin. 

        People uninterested in business can then live their lives without the noise. And in the end, by following Buffett's simple advice, they will do better than most. For the few that can beat the indexes, and enjoy trying, the aforementioned may not apply.

        There were others that gave similar advice, such as Jack Bogle. Unfortunately, much of it was drowned out by the massive industry that wants people not to follow such simple advice. For many people, had it been known many years ago that this was the best course of action, their losses would be far less and their financial success far greater. 

         If Buffett's advice is widely followed, a lot of people will become unemployed. At the same time, a lot of average people will end up in far better financial shape in their golden years.

         There is concern that another financial bubble is being created. If there is another market crash or significant downturn, older folks may no longer have the luxury of time to ride it out. For others, it will not matter. The index fund is a good strategy. But it should not leave people blind to the unaddressed underfunding of pensions and other financial obligations that a rising stock market has allowed reckless policy makers to ignore. Or environmental degradation and the subsequent loss of the planet's real wealth. Financial health is not just about the financial wealth of individuals.