Warren Buffett Says to Buy This Vanguard ETF. It Could Turn $1,000 per Month Into $264,000 in 10 Years.

Core Insights - Warren Buffett is recognized as an exceptional capital allocator, with his management of Berkshire Hathaway leading to its transformation into a $1 trillion conglomerate [1] - Buffett recommends a simple investment strategy for average investors, advocating for the purchase of a Vanguard exchange-traded fund (ETF) that could potentially grow a monthly investment of $1,000 into $264,000 over a decade [2] Investment Strategy - Buffett suggests that most retail investors should adopt a simpler approach by investing in a low-cost ETF that tracks the S&P 500, such as the Vanguard S&P 500 ETF (NYSEMKT: VOO), which has a low expense ratio of 0.03% [5] - The Vanguard S&P 500 ETF provides exposure to 500 large and profitable companies, including major tech firms like Nvidia, Microsoft, and Apple, while ensuring broad diversification across all sectors of the economy [7] Market Performance - The S&P 500 has achieved a total return of 304% over the past decade, translating to an annualized gain of 15% as of September 19, driven by low interest rates, significant passive capital inflows, and the growth of large tech companies [9] - Investing in the ETF implies a bet on the continued growth and innovation of the U.S. economy, with many S&P 500 companies also generating revenues from international markets, which may offer additional growth opportunities [8]