When people discuss investment strategies, Warren Buffett’s name is likely to come up. 

One of America’s most successful investors, he generated an average annual return of nearly 19% for Berkshire Hathaway shareholders over more than 60 years. That’s well above the S&P 500 index’s (^GSPC) nearly 11% gain over the same period.

His philosophy: Buy undervalued stocks for companies with strong financial fundamentals.

However, for the average investor, he recommends just the opposite. For those who don’t have the time or inclination to research companies and maintain a portfolio, he suggests low-cost index funds and what many experts might consider an aggressive allocation: 90% in equities and 10% in…