Widely regarded as one of the most successful investors in history, Warren Buffett has been following the Monday Morning Millionaire Program principles for over 70 years, long before John Bogle first articulated them.
First, he started saving before age 10, giving him more than 80 years for the magic of compounding to work for him.
Second, he has been a self-directed (do-it-yourself) investor the entire time.
Third, he did not pick stocks but rather, bought entire businesses. Since many of these businesses are publicly held companies, it looks like Buffett is a stock picker. He repeatedly states that he and his partner Charlie Munger do not make stock recommendations.
Most Monday Morning Millionaire Program members cannot buy many entire businesses. However, we can invest in the entire US economy by buying index exchange-traded funds.
Fourth, in his writing and his talks, Buffett consistently affirms that he cannot time markets except in the very long run. He is supremely confident that in the long run, the American economy will continue to do well. It is the place to be.
Fifth, in his asset allocation, Buffett always has a large percentage in cash to allow bargain buying.
Sixth and final, Buffett avoids complexity and never buys anything that he cannot easily explain to a 10-year-old.
I have attended many of Warren Buffett’s company, Berkshire Hathaway annual shareholder’s meetings. My admiration for him continues to grow, more so when he announced that he wants most of his estate to be invested in the Monday Morning Millionaire Program way, in a low-cost, index exchange-traded fund.
Maybe we should invite him to join the Monday Morning Millionaire Program.
Please note that the Monday Morning Millionaire Program contains opinions only. It does not provide any investment advice or endorsements.