Since 1976, index funds such as the Vanguard index fund have existed for individual investors to more easily take control of the markets. The Warren Buffett way is the same general principle: “The trick is to essentially by all the big companies through the S&P 500, and to do it consistently.” Quotes such as these from Warren Buffett highlight the importance of diversifying investments and not picking individual companies. “If returns are going to be seven or eight percent and you’re paying one percent in fees, that makes an enormous difference in the amount of money you’re going to have in retirement.”
The whole philosophy and idea behind Warren Buffett investment strategy is to buy a bunch of index funds that are comprised of stocks which you are familiar with, and generally ride the waves of the markets as they go up. And then, just like in Monopoly when a house goes on sale, you buy at any low point or retracement in the market. The Warren Buffett way is nothing more than a simple Buy and Hold strategy, while adding on when possible. The whole idea is that America is an attractive market that is always growing, and to invest on America is a winning investment. In the book titled the Warren Buffett Way by Robert Hagstrom, he outlines Warren’s simple investment principle: Invest your money in what you know and what you love, and then give it your all when the markets become on sale during times of downturns and retracements.