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Berkshire Hathaway Inc. (BRK/A) Chairman Warren Buffett gave the company an endorsement in March in his annual letter to shareholders. Buffett said he told the trustee managing his affairs that after his death he wanted 90 percent of the cash he leaves for his wife put into a very low-cost Standard & Poor’s 500 Index fund.
“I suggest Vanguard’s,” he wrote. The results are likely to be “superior to those attained by most investors -- whether pension funds, institutions or individuals -- who employ high-fee managers.”
The firm’s Vanguard 500 Index Fund tracking the U.S. benchmark took in four times as much money this year from March through June as it did in the same period in 2013, a surge the company attributed to Buffett’s backing."
I have been reading several articles recently regarding inflows at major fund companies. It would seem many companies are being rewarded with large inflows. The big names get the headlines.
Vanguard is well deserving of that money. They stepped up to the plate with 0.05% expense ratios with some stock index funds, and for that the deserve a lot. Their expense ratios whether in stock or bond index funds, and even active funds, are so shareholder friendly, I'm sure they will keep attracting the money.
It's nice that Vanguard is owned by the those invested in its funds. Very unique. You're not getting ripped off by undeservedly high expense ratios. Perhaps a few outfits deserve their higher expense ratios, but not very many.
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Berkshire Hathaway Inc. (BRK/A) Chairman Warren Buffett gave the company an endorsement in March in his annual letter to shareholders. Buffett said he told the trustee managing his affairs that after his death he wanted 90 percent of the cash he leaves for his wife put into a very low-cost Standard & Poor’s 500 Index fund.
“I suggest Vanguard’s,” he wrote. The results are likely to be “superior to those attained by most investors -- whether pension funds, institutions or individuals -- who employ high-fee managers.”
The firm’s Vanguard 500 Index Fund tracking the U.S. benchmark took in four times as much money this year from March through June as it did in the same period in 2013, a surge the company attributed to Buffett’s backing."
Quietly, T. Rowe Price is also doing very well in attracting new asset this year.