You should pick your credit card perks like Warren Buffett picks his stocks, TD Bank exec says

If you’re a Boglehead like myself, you can talk endlessly about the compounding powers of the three-fund “lazy portfolio”: some bonds, some domestic stocks, and some international ones. Set it and forget it; never look at it again until you need to. If you don’t feel comfortable with the three-fund portfolio, you might want to get a financial advisor who can pick specific stocks for you for an AUM. The opportunity cost is in your head: For a low-expense ratio, you can have some ETFs that fit the three-fund portfolio, or you can shove all decision-making onto an advisor who will charge more to manage your portfolio.

If you’re a Warren Buffett aficionado, you’ll recognize this as his ever-touted “circle of competence,” in which you stick to what you know and leave what you don’t know to those, well, who know. Invest in what you understand and on things that have long-term value, and leave the frequent trading and market volatility to those who know what they’re doing.

It seems as if the king of compounding’s philosophy might not just work for investing but also for picking credit cards—and the perks you get with them.

At least that’s according to Chris Fred, TD Bank’s head of credit cards and unsecured lending, who said sometimes, points chasing (or “churning,” as those in the know call it) might prove too difficult for the average person.

“Just like Warren Buffett says to buy the index fund, a good flat‑rate card often wins out over a...