Should You Buy a Business or an Index Fund?

Tomorrow’s Fortune

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  • Buy a Business or Index Funds? Can’t go wrong with either… but here’s a clue

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  • What’s Happening in the Markets? Trump’s Tweet Wipes Out $2T, Gold Rallying - Again, China Bites Back and Nvidia’s Billion Dollar Startup Portfolio

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TOP STORY

Which is better for you? Business or Index Funds

If you’re sitting on some cash right now, you’ve probably asked yourself this question:
Should I buy a business or just invest it in index funds?

The truth is—you can’t really go wrong with either.
But they’re two completely different games.

Game #1: The Passive Path — Index Funds

If you’re a passive investor—someone who wants to build wealth quietly, steadily, and without dedicating your life to running a company—then index funds are the move.

Warren Buffett has been clear on this for decades: Most investors, large and small, should just invest in a low-cost S&P 500 index fund.

Why?
Because you’re not smarter than Wall Street.
And you don’t need to be.

Index funds let you own a slice of hundreds of great businesses automatically. They rebalance themselves, require no management, and—most importantly—they outperform the vast majority of active investors and hedge funds over the long term.

The numbers prove it:The S&P 500 has returned an average of ~10.5% annually for the past 70+ years.
That means your money doubles roughly every 7 years, without lifting a finger.

For 95% of people, that’s the best wealth-building machine ever created.

Game #2: The Active Path — Buying a Business

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