Justin Sullivan/Getty
- Warren Buffett's investment advice is the most useful that Marc Andreessen knows of.
- He praised Buffett's advice of putting all your eggs in one basket and watching it like a hawk.
- Andreessen suggested putting money into an S&P 500 Index Fund, and warned against getting "fancy."
- Sign up here for our daily newsletter, 10 Things Before the Opening Bell.
The best investment advice Marc Andreessen has ever heard is from Warren Buffett, the tech legend and venture capitalist told Bloomberg's David Rubenstein in a recent interview.
Berkshire Hathaway CEO Buffett, who has a net worth of about $101 billion, is famous for the strategies he has used to become one of the most successful investors of our time. One that's often quoted is this: "Keep all your eggs in one basket, but watch that basket closely."
Andreessen thinks that is sound advice for investors. "Really know what you're doing," he said. "Really deeply understand the nature of what you're investing in."
The tech VC played a key role in creating the web browser Mosaic. Since co-founding Andreessen Horowitz, he has backed a string of tech companies, from social-media stalwarts Twitter and Facebook to audio-only chat app Clubhouse.
Buffett's approach, known as value investing, is the opposite of speculative get-rich-quick investments such as cryptocurrencies. His strategy requires investors to dive into not just the latest news, but focus on a company's fundamentals when deciding where to allocate their money.
The billionaire investor has slammed bitcoin as a worthless delusion, called it "rat poison," and predicted digital assets will have a bad ending. But Andreessen doesn't share that view of cryptocurrencies, saying that he takes them "very seriously."
"Money is one application. There are many other applications, many other things that people are going to be able to do with this technology," he said.
Andreessen also recommended putting money into an S&P 500 Index Fund, which is said to offer good returns over time. "Don't get fancy," he warned.
For those aspiring to become successful venture capitalists, Andreessen thinks understanding people, technology, and markets in combination is key. "It's quite literally a liberal art," he said.