CEO Tom Gardner: Pay Only for Advice "Aligned With You." Otherwise, Index.

By Reuben Gregg Brewer | July 08, 2025, 6:30 AM

Key Points

  • Tom Gardner was recently asked a question about investing advice, which is what The Motley Fool provides to subscribers.

  • He gave a blunt answer: Be skeptical, work with people you can trust, and if you can't find advice you like, just use an index fund.

  • Gardner's advice sounds a lot like what Warren Buffett, the CEO of Berkshire Hathaway, has told investors.

Tom Gardner is the chief executive officer of The Motley Fool, a company that provides investment advice. When asked, "What do you say to somebody who's skeptical about paying for investment advice?" He gave an answer that covered a lot of ground and, not surprisingly, sounded a lot like what investing icon Warren Buffett has said.

The big takeaways? Be skeptical, work with people you trust, and if you can't find someone you trust, go with an index fund. But digging into Gardner's answer a little bit more will help you be a better investor, so let's go.

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You should be skeptical

Every investment you make requires you to trust someone else with your hard-earned savings. That is the core of what Gardner is saying and why he believes every investor should be skeptical. That's as true of investors checking out The Motley Fool as is it of investors buying exchange-traded funds (ETFs) or those buying Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) stock.

A person hugging a piggy bank.

Image source: Getty Images.

From a basic level, you need to ask about and understand what the person or entity is doing with your cash and why. But even more importantly, you need to trust that the person or entity that is investing on your behalf is doing so with your best interests at heart. Far too often on Wall Street, greed leads people to do things that are harmful to themselves or, sadly, others.

Are they eating their own cooking?

One of the best ways to figure out if you can trust someone is to invest alongside them. Basically, are they pitching you an investment idea they are also invested in? That's where Buffett and Berkshire Hathaway provide a great example. Not only is Buffett the CEO of Berkshire Hathaway, but he's also heavily invested in the stock himself. He's not just managing your money, he's managing his own money, too. (The Motley Fool recommends Berkshire Hathaway stock, by the way.)

What's interesting here is that Berkshire Hathaway is a company, but it is operated kind of like a mutual fund. Technically called a conglomerate, Berkshire Hathaway owns about 180 businesses that do a lot of different things, from operating trains to building houses. And it also owns a portfolio of stocks that trade publicly, including Coca-Cola (NYSE: KO), American Express (NYSE: AMX), and Chevron (NYSE: CVX), among others.

But when you buy Berkshire Hathaway, effectively giving Buffett and his team your hard-earned cash to invest for you, you know he's eating his own cooking, too. Like Gardner, Buffett has some advice for those who aren't comfortable allowing others to invest for them: Just buy an index fund. Among the best options are funds that track the S&P 500 index (SNPINDEX: ^GSPC), which broadly represents the U.S. economy.

Essentially, just buy the market and keep on buying it until you find someone you are comfortable trusting with your savings. And if you never find that person, it's OK. History suggests you will end up just fine if you keep buying the S&P 500 index.

SPY Chart

SPY data by YCharts

Trust is the name of the game on Wall Street

Most people have good intentions, so it isn't like you need to assume everyone on Wall Street is trying to rip you off. And still you need to take the time to get to know and understand the people you are trusting with your money. Even after doing some due diligence, though, you might still want to tread lightly.

That could be as simple as taking an entry level subscription to a Motley Fool newsletter to get a feel for what is being offered or buying a few shares of a stock, mutual fund, or ETF to get you into the groove of what is backing the investment. And remember that one of the most important signs that your interests are aligned with the person handling your money is if they are investing your money along with their own.

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Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway and Chevron. The Motley Fool has a disclosure policy.

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