Index Fund
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Warren Buffett is the world\\u2019s most successful investor. In a letter he wrote to his wife, advising her how to invest after he dies, he offers some clear advice: put almost everything into \\u201ca very low-cost S&P 500 index fund\\u201d. Index funds passively track the market as a whole by buying a little of everything, rather than trying to beat the market with clever stock picks \\u2013 the kind of clever stock picks that Warren Buffett himself has been making for more than half a century. Index funds now seem completely natural. But as recently as 1976 they didn\\u2019t exist. And, as Tim Harford explains, they have become very important indeed \\u2013 and not only to Mrs Buffett.
Editors: Richard Knight and Richard Vadon\\nProducer: Ben Crighton
(Image: Market graphs, Credit: Shutterstock)
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