Core Insights - Warren Buffett advocates for owning the S&P 500 index fund as the best investment strategy for most individuals, highlighting the Vanguard S&P 500 ETF as a prime example [1][4][5] Investment Strategy - Following Buffett's advice of investing $450 per month in the S&P 500 could potentially grow to $940,200 over time, based on historical performance [2][5] - The S&P 500 index includes 500 large U.S. companies, covering approximately 80% of domestic equities by market value and about 40% of global equities [4][5] Performance Metrics - The S&P 500 has delivered a total return of 1,820% over the last three decades, averaging an annual return of 10.3% [5] - Buffett's bet in 2007 against a hedge fund demonstrated the index's superiority, with the Vanguard S&P 500 ETF returning 126% from 2008 to 2017, outperforming the best Protégé fund by 38 percentage points [7][8] Top Holdings - The Vanguard S&P 500 ETF's top holdings include: - Nvidia: 8.4% - Apple: 6.8% - Microsoft: 6.5% - Alphabet: 5% - Amazon: 4% - Broadcom: 2.9% - Meta Platforms: 2.4% - Tesla: 2.1% - Berkshire Hathaway: 1.5% - JPMorgan Chase: 1.4% [6][9]
Warren Buffett Says Buy This Brilliant Vanguard Index Fund -- It Could Turn $450 Per Month Into $940,200
Yahoo Finance·2025-11-23 09:12