Buffett's Investing Plan for Personal and Self Investing - why it works
You can beat the Suits
Buffett's Investing Plan for Personal and Self Investing - why it works
You can beat the Suits
Wall Street does not want you to see this - the buffett plan
The Buffett Long-Term Investing Solution
Warren Buffett is widely regarded as one of the greatest investors of our lifetime. Now worth well over $100 billion, he built Berkshire Hathaway into one of the largest and most successful companies in the world.
When asked how most people should invest, Buffett’s recommendation is remarkably simple: buy a low-cost S&P 500 index fund, contribute to it as often as you can, and hold it for a lifetime.
So the big question is: Is this the best way for most people to invest?
This site contains the evidence I’ve found that supports Buffett’s thesis.
What you’ll find here
- Watch Buffett make the case himself at the 2018 Berkshire Hathaway Annual Meeting. In about 15 minutes, Buffett explains why he believes indexing solves the investing problem—and why it’s the best approach for most people.
- Learn why index funds were created by Jack Bogle and Vanguard, and how research in the 1970s by Paul Samuelson and Charles Ellis showed that many professional money managers were not beating the market—the market was beating them.
- Review long-term performance evidence, including S&P’s SPIVA scorecards showing that roughly 95% of professional managers trail their benchmark over 20 years.
- Understand why this happens. S&P has examined the causes and points to the professionalization of markets, costs and fees, and the skewness of stock returns (where a small number of big winners drive most long-term gains).
- Buffett’s famous bet: Buffett wagered that the S&P 500 would outperform a hand-picked portfolio of hedge funds—and won.
- Hear from other legendary investors, including:
- Charlie Munger, billionaire investor and former Vice Chairman of Berkshire Hathaway, who made index funds the only investment option when setting up the Daily Journal’s retirement plan. Munger famously said index funds have been a cause of “great agony” for many investment professionals—most of whom respond with denial and the belief that next year will be different.
- Charles Ellis, author of Winning the Loser’s Game and once called the “Wisest Man on Wall Street,” who argues that although it has been clear since the 1970s that active management doesn’t work, much of the investment industry still behaves as if we are in a pre-1970s world.
- Ed Thorp, mathematician and hedge-fund pioneer who beat casinos at blackjack and markets through quantitative strategies, yet strongly advocates the Buffett solution—arguing that investors who do anything other than indexing are very likely to underperform the market by several percentage points over time.
- Learn what the S&P 500 index is, how it works, and how market leadership changes over time.
And today, this philosophy is becoming national policy:
- The U.S. is investing $1,000 for every newborn using this exact strategy.
- Michael Dell donated $6 billion, adding $250 per child.
The goal: show every child in America the simplest, most reliable path to building lasting wealth.
Start Here
Start here with Buffett’s 2018 investing lesson.
▶ The Warren Buffett Investing Plan
Then check out the blog and other resources to learn how to put this strategy to work for your future.
© 2025 Dan Mahoney | Disclaimer: I’m not a financial pro — just a self-taught investor sharing lessons from giants like Buffett. This is education, not advice. Investing has risks — talk to an advisor first.
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