Warren Buffett recommends investing $500 per month in Vanguard S&P 500 ETF for significant growth.
From Yahoo Finance: 2025-06-21 04:08:00
Warren Buffett shares valuable investment advice in his shareholder letters and annual meetings, recommending one investment for most people. Consistently adding to your portfolio could lead to six figures within a decade. Buffett suggests putting money in an index fund like Vanguard S&P 500 ETF for long-term wealth growth.
By investing $500 monthly in the Vanguard S&P 500 ETF and reinvesting dividends, you could expect significant portfolio growth over time. The S&P 500 has historically produced a compound annual total return of 10.5%. Contributing to an employer-sponsored retirement plan with matching contributions can also accelerate wealth accumulation.
Charlie Munger advises that the first $100,000 is the hardest to accumulate, after which portfolio returns can start working for you. By letting investments sit and compound over time, you can see substantial growth without needing special skills or market timing knowledge. Consistent contributions can lead to impressive wealth accumulation.