As the trader world runs from market to market, there will be distortions, moments when markets go "on sale," to borrow Buffett's favorite phrase. Periodic rebalancing captures those gains automatically. Using index funds keeps the cost down and lowers the risk of concentrated bets.
Should you try to think like Buffett? Unless you have his track record and expertise, no, you should not. Should you buy whole markets on the cheap while rebalancing with discipline? Absolutely yes.
Buffett himself has said that index funds are the answer for most people, and he's right. Low-cost, disciplined investing will get you the results you need for retirement, if you stick with it.
Buy low, sell high. It really doesn't get any simpler than that. A balanced, low-cost retirement investment portfolio achieves that and more.
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