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Warren Buffett to heirs: Put my estate in index funds

This is an interesting point of view (that I like) from the greatest investor ever.

Steve

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Farmer Buffett says invest in stocks like you would a farm — and watch your garden grow.

If you follow the career of billionaire investor Warren Buffett, you likely have kept up on the succession chatter of late.

After all, Buffet is 83 now. Sooner or later, someone will take the reins at his firm, Berkshire Hathaway, and that person will pick up the mantle of his amazing performance over the years.

They will be tough shoes to fill. Buffett racked up nearly a 20% annualized return through 2012 from 1965, turning a foundering textile mill into a holding company for ventures that span the globe and run the gamut from consumer goods and newspapers to industrial giants and railroads.

That compares to a 9.4% return on the Standard & Poor’s 500 Index SPX +0.14% — quite a run. And while investors have long made the pilgrimage to Berkshire headquarters in Omaha to hear Buffett and his managers speak, they probably weren’t prepared for his latest remarks on investing. He flatly endorsed a simple portfolio of inexpensive index funds for his own survivors.

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