The 1 Vanguard ETF That Warren Buffett's Recent Remarks Suggest He Would Buy Right Now

Core Viewpoint - Warren Buffett advocates for retail investors to adopt a simple investment strategy focused on low-cost S&P 500 index funds, particularly favoring the Vanguard S&P 500 ETF [1][3][12] Investment Strategy - Buffett suggests a "set-it-and-forget" approach, emphasizing that most investors should invest in large-cap U.S. equities through index funds [2][6] - He believes that a low-cost index fund will outperform the majority of both amateur and professional money managers [3][9] Personal Investment Philosophy - In his 2013 letter to Berkshire Hathaway shareholders, Buffett advised allocating 10% of cash to short-term government bonds and 90% to a low-cost S&P 500 index fund, specifically recommending Vanguard's [4] - At the 2021 annual shareholder meeting, Buffett reiterated that buying an S&P 500 index fund is the best strategy for most people, acknowledging that many professionals fail to consistently beat the market [6][10] Dollar-Cost Averaging - Buffett promotes long-term dollar-cost averaging as a strategy for retail investors, allowing them to invest gradually over time to benefit from compound growth and reduce the risk of poor timing [7] Performance of the S&P 500 - The S&P 500 consists of 500 of the largest U.S. companies, making it a strong representation of the U.S. economy, with significant sector exposure to technology, financials, consumer discretionary, and communication services [10] - The top five components of the index—Nvidia, Apple, Alphabet, Microsoft, and Amazon—account for approximately 31% of its total value, highlighting the index's concentration risk [11]