Why Warren Buffett Picks Index Funds.

Warren Buffett is one of the best investment professionals in the world, and with good reason, because he has a career that stretches over fifty years. With a career that stretches so vast one can only wonder what kind of investment products Warren Buffett has stuck to for all of these years. Well in a recent interview Warren Buffett came clean and said that he actually prefers index funds, and recommended them to his wife before her untimely death. Warren Buffett has stood behind the index funds for a few reasons, with the first of which is the fact that the risk is spread across the entire fund.

Warren Buffett has famously said over and over again that index funds are one of the best investment tools in the world, and with good reason. Even for the newest investor, you are able to decide what level of risk that you want to take, and with each different index fund. The other good thing about an index fund is that covers a lot of ground, which means you can invest in multiple companies in the same sector, which means that you are spreading the risk further across as opposed to taking a loss on one company when the market is down. Warren Buffett strongly recommends index funds to investors who have limited investment experience, or just want a way to grow their money.

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