Speaking at his company’s annual shareholder meeting, Berkshire Hathaway Chairman Warren Buffet said he far prefers index funds to exchange-traded funds because the latter encourages investors to trade frequently, Dow Jones reports.

“The best way, in my view, is to just buy a low-cost index fund and keep buying it regularly over time, because you’ll be buying into a wonderful industry, which, in effect, is all of American industry,” Buffet said.

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