Q: What advice would you give to someone who is not a professional investor? Where should they put their money?
Answer from Warren Buffet:
Well, if they’re not going to be an active investor - and very few should try to do that - then they should just stay with index funds. Any low-cost index fund. And they shoud buy it over time. They are not going to be able to pick the right price and the right time. What they want to do is avoid the wrong price and wrong stock. You just make sure you own a piece of American business, and you don’t buy all at one time.
Source: Fortune Magazine (April 28, 2008)