Best Broker for Following Warren Buffett Which online stock...

Best Broker for Following Warren Buffett

Which online stock broker should you use to build your Warren Buffett portfolio? The answer is simple. It doesn’t really matter which broker you use.

Since you are investing for the long haul and will be accumulating a large stake over many years, broker trade commissions will quickly become negligible, even if buying shares every month as Buffett recommends.

The biggest advantage of a Warren Buffett portfolio is what we discussed earlier, the super low costs. Remember, for every $10,000 invested in Vanguard’s S&P 500 ETF VOO or mutual fund VFIAX, .05% is only $5 per year in management fees.

Whichever broker you choose, reinvesting the dividends through a DRIP (dividend reinvestment plan) should be a free option (meaning the online broker will not charge you to automatically reinvest the dividends and buy more shares). Our sister site StockBrokers.com provides a great tool for comparing brokers side by side.

One final option, go direct to the fund source and use Vanguard.

I personally hold VOO in ten different online broker accounts currently (I do this because I head research for our sister site StockBrokers.com). Point is this, it doesn’t matter where you buy. Just buy and hold until retirement.