What does Warren Buffett recommend for regular investors?

A low-cost S&P 500 index fund bought consistently and held for decades. His instruction for his own estate: 90% S&P 500 index fund, 10% short-term government bonds.

How much do investment fees really matter?

At a 2% MER — typical for Canadian mutual funds — roughly 40% of your final balance over 40 years goes to fees versus a 0.1% index fund. Buffett considers fee minimization the single most controllable factor in returns.

What is Buffett's circle of competence?

Only invest in businesses you genuinely understand. If you can't explain how it makes money in a sentence, it's speculation — and belongs in the small 'fun money' bucket, if anywhere.

🎩 What Would They Say? · educational fun

What Would Warren Buffett Say?

He bet $1M that an index fund would beat hedge funds — and won. See how your portfolio scores against the Oracle's rules, and what your fees really cost.

The Warren Buffett score

What your fees cost over 30 years

Your current MER vs a 0.1% index fund on the same portfolio — the difference is the manager’s retirement, not yours.

What he'd have you do next

In order. Straight from the philosophy.

The rules this tool applies

The Buffett rules applied

For everyone who isn't a full-time analyst: a low-cost S&P 500 index fund, bought consistently, held forever — his will directs 90% of his estate into exactly that. Fees are the enemy: he won a public $1M bet that the index would beat a basket of hedge funds over 10 years. Never invest in what you don't understand (his circle of competence), and treat volatility as opportunity, not risk.

Scoring

Points for index weighting and long holding; penalties for speculation above 5%, fees above 0.5%, frequent trading, and cash drag beyond a reasonable buffer (though he famously keeps powder dry — the nuance is having a plan for it).

The fine print

This is an educational parody applying Warren Buffett's well-documented public philosophy to your numbers. All verdict lines are paraphrases in his style — not real quotes. Not affiliated with or endorsed by Warren Buffett. For actual advice, talk to a licensed professional.

Educational fun, not financial advice. All math runs in your browser; nothing is sent or stored.