Be Like Buffett: Buy The S&P 500 Index & Beat Your Stock-Picking Buddies

CMQ Investing Presents: Compound Money Quietly

Episode #14 was prompted by a question that Bryan asked me on Instagram:

I agree that it’s best to be concentrated and knowledgeable about a few companies that are good ideas trading at good prices, but what do you think of the argument that some people make that when you’re younger, you should be more “enterprising” with your strategy or even more speculative.

My answer was off-the-cuff. Recording it this way allowed me to tap into an insight that I may have otherwise failed to mention.

I don’t want to spoil the episode, but you can expect thoughtful commentary, lessons from legendary investors, and my best attempts to make you laugh.

One of the issues with taking the passive path to wealth is that your friends might be having fun picking stocks, recruiting people to the #DogecoinArmy, and buying the dip like Cathie Wood. The peer pressure to join them can keep you from taking advantage of the passive approach.

I gave Bryan an idea that any CMQ Investor can use when facing peer pressure to make short-term, speculative moves in the market.

Tell your friend(s) that you will buy the S&P 500 Index ETF (VOO). They can use whatever strategy they prefer. The investor with the best returns in 10 years gets to liquidate the loser’s account and take their money. Ha!

It’s sort of like what Warren Buffett did.

The advantages of passive indexing in your twenties go beyond the returns (and a potentially friendship-ending bet.) Listen to Episode #14 to learn more!