Berkshire Hathaway Inc Chairman Warren Buffett on Saturday ramped up his criticism of Wall Street, saying investors should "stick with low-cost index funds."
"When trillions of dollars are managed by Wall Streeters charging high fees, it will usually be the managers who reap outsized profits, not the clients," Buffett, widely considered one of the world's best investors, said in his annual letter to shareholders.
"Both large and small investors should stick with low-cost index funds."
Buffett has said he believes most stock investors are better off with low-cost index funds than paying higher fees to managers who often underperform.
His latest letter adds fuel to the fire as an accelerating flow of cash moves from actively managed funds, such as hedge funds and many mutual funds, to generally lower-cost funds tracking indexes. (Reporting by Trevor Hunnicutt)