Monday on CNBC, Warren Buffet commented that he was unable to beat the S&P 500 and encourages people to invest in the market. The Oracle of Omaha also revealed that even his two investing mentors have also failed to beat it as well, under-performing the market by a slim margin. The billionaire investor also gives his opinion, calling the index “the thing that makes the most sense practically all of the time”.

Index finance is the embodiment of an accommodating type of investing. These types of funds are written in index forms, ranging from highest to lowest returning stocks. The S&P 500 is a good example of this kind a type of index, holding top-tier companies such as Apple, Microsoft and Google.

Buffet also mentioned that if one invested $10,000 in an index fund back in 1942, one would have an investment of $51 million. But even though this is apparent, some investors still strongly believe that this type of investing is closely associated with resignation. Regarding this, Christopher Cordaro, Regent Atlantic’s chief investment officer advises that the greatest factor as to why people under-perform is their lack of modesty. He commented that people think they are well aware of when to jump in and out of the market or which segment of stocks is going to do well.

Meanwhile, a recent study from Morningstar discovered that in 2018 just 38 percent of functional U.S. stock funds lasted longer than their compliant peer funds. Lastly, Cordaro mentioned that buying the S&P is equivalent to buying in the US economy. He commented that for him, that is not even close to being ordinary.