Warren Buffett has been asked a number of times to provide advice for the lazy long term investor- ie. the investor who doesn't want to spend a lot of time researching companies but wants to profit over the long run. His recommended solution is a market index fund. I would speculate that the two reasons he recommends this route are:
Other solutions for the lazy long term investor have been suggested such as greenblatt's methodology, dogs of the dow and the list goes on.Defining The Less Lazy Investor
I think some of these are great solutions for the "truly" lazy investor. I have come to realize that there is no black and white, their is instead a spectrum with many things. The same hold true with the lazy investor, there are some lazy investors who want to do absolutely nothing, while their are others willing to partake in some research- they just don't have 30 hours a week to look at companies. I often hear from these investors; they want recommendations of where they should be spending their limited time.Advice for the Less Lazy Investor
For the what I am calling the "less" lazy long term investor I would recommend something slightly more involved than a market index fund. The less lazy investor should instead spend their limited time performing analysis of companies listed on Standard and Poor's Dividend Aristocrat List. In order to be listed here a company must meet a series of criteria:Sustained Dividends for the Lazy Long Term Investor
By selecting this index or investing directly in companies from this list the less lazy investor has garnered a margin of safety. Selecting companies on this list promises to give the investor, at minimum, a company that in the past has cared about its dividend. The odds have it that these companies will continue to care in the future which can be a huge benefit to the long term investor. By only doing research against these companies the less lazy investor has substantially improved their odds of profiting over the long run.
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