Warren Buffett, the CEO of Berkshire Hathaway, is known for his investment advice and legendary stock market success, earning him the nickname “The Oracle of Omaha.” He advocates for low-cost index funds, with Berkshire Hathaway outperforming the S&P 500 over 60 years.

Buffett has repeatedly endorsed low-cost index funds, including the S&P 500, for most investors. His principles stress the benefits of index funds over actively managed funds, leading to better returns for the average investor.

In a high-profile bet in 2007, Buffett wagered $1 million that the S&P 500 would outperform hedge funds over 10 years. The S&P 500 did just that, with an average annual return of 7.1% compared to 2.1% for the hedge funds selected.

Over the last 20 years, the S&P 500 has posted an average annual return of 9.75%, showcasing its long-term stability and growth potential for investors. Various starting amounts show significant growth over two decades, demonstrating the power of consistent investment.

Buffett’s specific advice for his estate trustee includes putting 90% of the cash in a very low-cost S&P 500 index fund, emphasizing the long-term benefits of this investment strategy. His endorsement of the S&P 500 as a sound investment choice is rooted in its historical performance and stability.

Read more at Yahoo Finance: Here’s What You’d Make If You Invested $100 a Week in These Index Funds