In Warren's Buffet's latest Annual Letter to his shareholders, he has an advice for the non-professional investors who are not equipped with the skill to evaluate businesses, and that is to invest in low cost S&P500 index fund (a.k.a. ETF). He also mentioned that in his will, the cash entrusted to a trustee for his wife is to be 90% invested in a S&P500 index fund, and the remaining 10% in short term government bonds.
To the ordinary people who have not started investing, it could not be any simpler to just invest in an index fund, be it the local STI ETF (minimum cost of $320) listed on the Singapore stock exchange or a Vanguard S&P500 ETF (minimum cost of USD100) listed in the New York Stock Exchange. This is ultimately what Warren Buffet is doing also.
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