Warren Buffett recommends investing in Vanguard's S&P 500 ETF for long-term consistent growth

From Nasdaq: 2024-12-23 04:10:00

Warren Buffett’s Berkshire Hathaway has seen share prices grow at 20% annually since 1965, outperforming the S&P 500. Buffett recommends owning an S&P 500 index fund like Vanguard’s ETF for most investors. The fund includes top stocks like Apple, Nvidia, and Microsoft, and has consistently delivered strong returns over time.

Investing $500 monthly in the Vanguard S&P 500 ETF could yield $986,900 over 30 years. The fund tracks the S&P 500, providing exposure to 500 large U.S. companies across various sectors. Buffett believes in the fund’s ability to offer broad market exposure and consistent growth, advising against picking individual stocks.

Buffett emphasizes that even professional money managers struggle to beat the S&P 500 index. Less than 5% of large-cap funds have outperformed the index recently. He suggests that owning a cross-section of businesses through an S&P 500 index fund is a prudent long-term investment strategy for most individuals, given the index’s historical performance.

With an annual return of 10%, $500 monthly investments in the Vanguard S&P 500 ETF could grow to $95,600 in a decade, $343,600 in two decades, and $986,900 in three decades. The fund’s low expense ratio of 0.03% makes it a cost-effective option for investors seeking diversified exposure to the market’s top companies.

For investors looking to potentially capitalize on market opportunities, expert analysts offer “Double Down” stock recommendations. These picks aim to identify companies poised for significant growth, with past examples like Nvidia, Apple, and Netflix delivering impressive returns for early investors. Act quickly to take advantage of these opportunities.



Read more at Nasdaq: Warren Buffett Recommends This Index Fund. It Could Turn $500 Per Month Into $968,900