Warren Buffett recommends investing in S&P 500 index fund for long-term wealth accumulation.

From Nasdaq: 2024-07-11 05:12:00

Warren Buffett has been incredibly successful, with Berkshire Hathaway returning 19.8% annually between 1965 and 2023, almost doubling the S&P 500. He recommends investing in an S&P 500 index fund, believing it’s the best option for the average investor. This advice could turn $500 per month into $986,900 over the next three decades. The S&P 500 tracks 500 U.S. companies with specific criteria, providing exposure to some of the most influential companies in the world. The Vanguard S&P 500 ETF holds top positions like Microsoft, Apple, and Nvidia, allowing investors to spread money across these companies. Warren Buffett sees the S&P 500 as a reliable way to make money long-term, as it has produced a positive return over every 20-year period in history. By investing $500 per month in the Vanguard S&P 500 ETF, investors could accumulate $986,900 in three decades. The Vanguard S&P 500 ETF has an expense ratio of 0.03%, making it cheaper than other index funds. It can complement a portfolio of individual stocks, providing a diversified portfolio that balances market performance with potential outperformance from individual stocks. The Motley Fool analysts have identified the 10 best stocks for investors to buy, which could produce significant returns in the coming years. Consider diversifying your portfolio with individual stocks and an S&P 500 index fund for a balanced approach to investing.



Read more at Nasdaq: Warren Buffett Recommends This Magnificent Index Fund. It Could Turn $500 Per Month Into $986,900