Warren Buffett, only the dollar value is called “thing that is the most dumbest in the world.” But there is 1 main exception.

• The cost of the dollar is a common strategy to limit the risks of an average, but can come with significant costs.

• Warren Buffett, S & P 500 was mostly able to remove money in the most time.

• However, Buffett, a certain group of investors in a group of investors, puts money to work in securities.

• 10 shares I better like Berkshire Hathaway

Many financial experts finish the average as a clever way to invest money on the stock exchange. Warren Buffett, at least disagrees in some cases.

Dollar value average A strategy you’ve received a certain cash and periodically invested in securities. It is often recommended for investors sitting on a disposable cash that wants to minimize the risk of paying a lot of money for a part.

There is no more money meeting than Warren Buffett right now. Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) In the first quarter, more than $ 348 billion, the money and treasury ended. But Buffett was good to raise money and wait for an opportunity in the market. This year’s shareholder’s shareholder’s shareholder’s shareholder, even so much that the cash stream of cash and the operation of Berkshiri’s operation, “the dumbest of money to invest in this way in the world.” Berkshire’s money will not cost the dollar.

But Buffett made carved from the main exception for some investors. And it can be one of the smartest things you can do with your money.

As for investment, there are many different routes you can take. A list of remote uses includes:

• Trade: You are looking for to take advantage of short-term price changes in a particular security.

• Speculation (as enterprise capitalists): Put a lot of small bets in many small bets, with expectations that will leave only one handful when the rest go zero.

• Purchase and possession of your purchase: get a share in companies with expectations for long-term gratitude.

• Passive Investment: For example, by receiving index funds that aims to match a certain criteria’s income.

There are many different tactics you can use to play each of these games and each of them can be earned.

Buffett played more than one game throughout his life, but now the most successful game has been purchased. The average annual return for Berkshire Hathaway’s shareholders is about twice S & P 500 Because Buffett seized in 1965.

One of the key tactic buffettes is used to use it to make purchases and is patient in the investment, or inevitably uses it to ensure good deployment to take advantage of opportunities. “We have always made more money than we didn’t want to put a full investment.” Sitting in cash Buffett gives you comfort to take advantage of rare opportunities that offer extremely high levels.

Created an incredible investment in the financial crisis, including (including) Bank of America). Were able to collect billions of dollars with them Apple stock when trading during unreasonable low assessment. Recently, there was a lifelong opportunity to invest in Japan’s trade homes. But similar opportunities do not arise every month. As a result, Berkshire Hathaway saw that Buffett was gathered in the last quartes to celebrate their values ​​in the last quartes for waiting for another great opportunity.

This is the tactics that serve him well. Anyone who emulates Buffett will often make the best of keeping some cash in their portfolio. Climbing the level of evaluation, when it is today, it is combined with relatively high interest rates in cash saving, and gives a lot of money by collecting some cash.

But if you play a different game from Buffett – and there are many people – it takes a completely different relationship to the dollar worth of dollars.

If you are not trying to defeat the average income of the S & P 500 or another benchmark index, the best thing you can do is invest in an index fund. But if you want to adapt your turns with the index, you should be fully invested.

“We do not think that this is only a few simple investors and for people who are passive investors to sit for life,” buffet “said shareholders.

The dollar value is averaged and I think the Buffett agree – I agree – make a little cash and systematically investigate the same amount of money or any period.

However, if you are already a passive investor sitting on a disposable cash, Buffett offers to invest immediately on your option. Indeed, the expected cost of one-time investment is much higher than the cost of the dollar over time. This is a value increase in stocks, average.

Unfortunately, many investors are unable to comply with the average work of the dollar in the only exception of Buffett. They forget what they play. As a result, according to research from Morningstar, the average index-fund investor increased by 0.8% per year and increased by 0.8% per year.

If you want to be a successful passive investor, you must use Buffett, a successful shopping investor from different tactics. In some cases, it means to reflect the reflection of what it does.

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Bank of America, Motley is an advertising partner of stupid money. Man levy Apple has positions. Motley has positions in Fool, Apple, Bank of America and Berkshire Hathaway and recommends. Motley Fool has a Disclosure Policy.

Warren Buffett, only the dollar value is called “thing that is the most dumbest in the world.” But there is 1 main exception. First, Motley was published by a fool