Warren Buffett’s will instructs 90% of his wife’s inheritance be allocated to a low-cost S&P 500 index fund, citing long-term confidence in the strategy.
Warren Buffett has outlined in his will that 90% of his wife’s inheritance should be invested in a low-cost S&P 500 index fund. The directive, revealed in his 2013 shareholder letter, reflects his confidence in passive index investing over active stock selection or complex strategies.
Buffett’s Berkshire Hathaway has delivered a 6,099,294% gain from 1964 to 2025, yet he advocates simplicity for his estate. The remaining 10% is earmarked for short-term government bonds, balancing risk with liquidity. The S&P 500 has historically weathered market volatility, including geopolitical shocks.
The approach aligns with Buffett’s broader investment philosophy, favoring broad market exposure over stock-picking for long-term growth. His advice underscores the appeal of low-cost index funds for individual investors seeking steady returns.