23 Nov 2016 Surprise! Warren Buffett turns out to be more prescient about stocks than politics ( Portfolio )

First, he believes that an investor in a low-cost S&P index fund who reinvests all dividends will do better—very likely substantially better—than an investor who buys a 17-year government bond and reinvests all of his coupons in the same instrument. Second, he suspects that amateur, “do-nothing” investors following the same index fund strategy will in aggregate end up with results superior to those realized by investors who choose to employ professionals charging high fees. Third, he predicts that many professionals who fail their investors by underperforming the index funds will get very rich in the process of doing so.