In his annual letter to Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) shareholders, Warren Buffett included an extensive discussion of investment fees, and how they can rob individual investors of profit. Here’s what Buffett says most people should do instead, and how you can do it in your own portfolio.
In Berkshire’s 2005 annual report, Buffett said active investment management, as a whole, would underperform the results of simple buy-and-hold investing, over long periods of time.