Warren Buffett reiterates his decades-long recommendation to hold low-cost S&P 500 index funds for most investors.
Warren Buffett has consistently advised investors to allocate funds to low-cost S&P 500 index funds, emphasizing simplicity over complexity. In his 2016 shareholder letter, he stated his preference for such funds, a stance he reinforced at Berkshire Hathaway’s 2021 annual meeting and in his 2013 will instructions.
Buffett’s guidance includes a 90% allocation to an S&P 500 index fund, such as Vanguard’s, with the remaining 10% in short-term government bonds. This strategy, he argues, delivers superior long-term results compared to most active management approaches.
The recommendation underscores Buffett’s belief in passive investing, contrasting with the perception that successful investing requires exclusive insights or complex strategies.