2-Fund Portfolio - Warren Buffet Recommends

Warren Buffet made billions by picking stocks. Yet in his 2013 Berkshire Hathaway letter to investors, he recommended a 2-fund portfolio for investing in stocks. Find out why.

Timecodes:

0:00 - Intro
0:51 - 2013 Berkshire Hathaway Letter
2:04 - The Warren Buffett 2-Fund Portfolio
3:12 - JL Collins 2-Fund Portfolio
4:05 - Is This A Sound Portfolio Approach?
7:33 - Compared to 3-Fund Portfolio
11:48 - When Would A 2-Fund Portfolio Make Sense For You?

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DISCLAIMER: I am not a financial adviser. These videos are for educational and entertainment purposes only. I am merely sharing my personal opinion. Please seek professional help when needed.

[NicholasBall]

I’ve been diligently working, saving and contributing towards financial freedom and early retirement, but the economy so far since the pandemic has eaten away most of my portfolio, what I want to know is this: Do I keep contributing to my portfolio in these unstable markets or do I look into alternative sectors.

[tzaqw]

The most underated "Not Financial Advise" channel on Youtube! Concise but very informative, most importantly zero fluff and no click bait! I've learned so much from your videos Tae <3

[susannnico]

The most important thing that should be on everyone's mind currently should be to invest in different sources of income that doesn't depend on the government. Especially with the current economic crisis around the word. This is still a good time to invest in various stocks, Gold, silver and digital currencies.

[TheRosswise]

This is similar to my early retirement portfolio. Has worked extremely well for me so far.

[kortyEdna]

Like Warren Buffet said, dividends are only good if the business you're investing into can't make good use of that capital. So, if you're trying to invest in businesses with actual growth, looking at dividends is a waste of time. Why are you investing into a company if they're returning capital to you because they think you can make better use if it than they can. It's not much different from bond investing. The way I see it, if you have a $1 million at some point, that'd be enough to create a portfolio that would pay you between 50k - 70k in dividend income.

[traviswingo]

0.04% on $10, 000 is just $4. The expense ratio alone will allow you to outperform most actively managed funds.

[raheelakhtar]

I own Berkshire Hathaway as an “index”: it represents businesses and holdings that represent the US economy and has better oversight than S&P 500.

[scottfromsouthcarolina]

Berkshire Hathaway also buys preferred shares in companies like they did in Occidental Petroleum getting a guaranteed return common shareholders don't receive. They also privately own many companies.

[loud]

increased losses for portfolios this quarter are predicted by market drops, skyrocketing inflation, a major interest rate hike by the Fed, andI rising treasury rates. How can I profit from the volatile market right now? I'm still considering whether to sell my million dollar bond and stock account.

[jasonkillam]

Thanks for your videos. This is one that helped me make the jump to get out of a manged fund situation and go it alone with the a simple 3 fund portfolio approach. Thanks.

[BenJune]

VOO and SCHD is all you will ever need....folks that try to sell you in international markets are adding risk. Also, VOO is cheaper to hold that VTI so it's a clear winner long term.

[svengrot]

Great video, Warren Buffet, Elon Musk, Jeff Bezos and Cathie Woods just to mention a few emphasizes on the importance of investing, I've been keen to invest lately, my challenge is knowing when to sell/hold and how to grow profit consistently even in an unsteady market.

[thanksthat]

My favorite thing about buffet is that he passed on apple for years, then ended up making the most money from it. That is exactly most people's experience with Bitcoin: "I don't like it because I don't understand it", then, a few years later, people change their minds and invest, then look back and realize it's been their best performer. Some are just starting that journey now. I was lucky enough to start in 2017, everyone will get there some day, some soon, some not until 2030; but everyone will have a small exposure at some point.

[michaelschiemer]

Stock futures erased some earlier gains Thursday, after the consumer-price index showed that headline inflation remained firm, while core numbers decelerated from August. I’m thinking of investing $400k into my stock portfolio but unsure about it

[CharlesVaughn-bmgq]

Buffett is a great businessman. He did not get to be one of richest men in the world by investing in stocks but by buying businesses. He is a great asset allocator.

[kayrealist]

I retired in my early 30's and it was not through index funds. I have been investing for nearly 30 years and here is the truth. Invest in index funds if you wish to average 6-8% annualized returns over your lifetime. If you do not have the time to study the world of business and economics, index is the only way.

[Native]

Is it ok to invest in international bonds as well like BNDW?

[dancingnachos]

Finally someone ordinary people who lack stock picking skills, can resonate with. Thanks

[yiehom]

To me this is essentially investing in a stocks etf and keep some cash handy in short term bonds

[parthasarathyvenkatadri]

My idea is that ... One must have 80%. Index funds 15 % government debt and the 5% upcoming alternative investments like crypto basically YOLO that 5 %