Warren Buffett has long warned others against picking stocks, but admits he invests in a ‘very irregular manner’

• Warren Buffett surprise surprise On Saturday that he plans to resign later this year while the CEO of Berkshire Hathaway renewed the accent on his inheritance and his influence. Although he has dedicated follow -up that pores on his action movements, Buffett has long argued that average investors should not choose the shares and simply park their money in an indexed fund of the S&P 500.

The legendary investor Warren Buffett devoted a follow -up that closely follows his action movements, but he has always urged most people to do what he says and not as he does.

His surprise announcement on Saturday that he plans to resign later this year while the CEO of Berkshire Hathaway renewed the emphasis on his inheritance and his influence on investors.

For many years, Buffett has preached the parking of your money in an Indication Fund for the S&P 500, rather than trying to thwart the market by choosing individual actions. In 2007, he gave a 1 million dollars bet that the index would surpass a collection of hedge funds over 10 years and won.

Regarding his personal finances, he also put his money where his mouth is. In his 2013 letter to Berkshire shareholdersHe exposed his simple advice to a trustee responsible for managing his wealth for his wife when he died.

“Put 10% of cash in short -term state bonds and 90% in an S&P 500 index fund at very low cost. (I suggest Vanguard.) I believe that the long -term results of the trust of this policy will be higher than those with most investors – if buffett wrote.

The weighing popularity of passive investment in recent years, led by index funds, suggests that many Americans have indeed taken their advice to heart.

However, buffett stock market movements are also closely monitored, and the quarterly deposits of Berkshire 13-F which reveal what he buys and sells markets, because investors are looking for possible indices on what to do with their own money.

Buffett foreknowledge was exhibited last month when the actions crashed. Its sales of Apple action last year, which added to the heap of massive cash of Berkshire, now seem particularly well timed given the sale of the market triggered by the prices of President Donald Trump.

Saturday morning, before dropping his bomb, that he wants Greg Abel to take the post of CEO by the end of the year, Buffett tacitly recognized that his investment activity for his Berkshire contrasts with his advice.

“We have made a lot of money by not wanting to be fully invested at any time, and we do not think that it is inappropriate in fact for people who are passive investors just to make some simple investments and sit for their lives,” he told the shareholders during a session of questions and answers during the annual meeting.

“But we have made the decision to be in the company, so we think that we can do a little better than to behave very irregularly,” added Buffett.

For the moment, he keeps his power dry because he has long deplored the prices of high assets and the lack of good deals to recover. Berkshire reported on Saturday that his available species had climbed $ 347.7 billion at the end of the first quarter, compared to $ 334.2 billion at the end of the fourth quarter.

While Buffett also revealed that Berkshire was almost pulling the trigger on an agreement of $ 10 billion recently, he continued to report patience.

He said that trying to invest tens of billions of dollars each year “would be the stupid thing in the world” because “things become extraordinarily attractive very occasionally”.

But he expressed his confidence that an investment opportunity will occur in the years to come. “It is very unlikely that it will happen tomorrow,” said Buffett. “This will not happen in five years.”

This story was initially presented on Fortune.com