Phil Town

And of course, it's a bit of a tongue in cheek bet, right?

Because 99% of the investors who are out there doing active fund management are doing it with modern portfolio theory.

And Warren Buffett's bet is that if you use modern portfolio theory,

You're going to do the index minus whatever your fees are.

All right.

Now, remember, this is coming from a guy who has crushed the index for 60 years.

I mean, he's got right now, Berkshire Hathaway is right at a 20% per year index.

annual compounded growth rate, which means that if you put in $10,000 back in the 60s, you'd have about $50 million right now.

So he's killed the market.

So you can do it.

He's just betting that the guys who do modern portfolio theory can't.

Okay, so the first thing you need to understand is that if you're not going to learn how to invest, there's very, very few choices out there.

I can't even think of anybody other than us that's trying to do this for the small investor.

So I can give you the answer that a lady got from the Social Security Department in New Zealand when she said, look, I'm 50 years old and I'm not going to have enough money to retire.

What should I do?

And the head of New Zealand's Social Security Department said, well, what you should do is go out and get a better job and save more money.

So that's choice number two, which is a little bit horrible because most people can't do that.

And then choice number three, frankly, I think you have to learn how to invest.

And the good news, Nathan, is that it isn't it's really simple to invest correctly.

I mean, I'll go through the points.