Mark Reinstein / Getty Images Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. Would Warren Buffett’s investment strategy be any different if he were a young man investing for the first time today, compared to when he got started back in the 1940s? This is the question someone once proposed at a Berkshire Hathaway shareholder meeting. Must Read “If you were 30 years old again, how would you invest, assuming you're not a full-time investor, you have ano ...

Key Points The index has historically enjoyed double-digit returns, although a slowdown could be coming. A simple buy-and-hold strategy can still grow your portfolio over the long haul. 10 stocks we like better than S&P 500 Index › If you want to invest in the stock market with little time and effort, a good strategy can be to simply "buy" the S&P 500 (SNPINDEX: ^GSPC). This benchmark index includes 500 of the biggest U.S. companies, and it's a popular choice for many investors. While you cannot i ...

Core Insights - Warren Buffett is recognized as one of Wall Street's greatest investors, with Berkshire Hathaway stock returning 20% annually over the last six decades, significantly outperforming the S&P 500's 10.4% annual return [1] Investment Strategy - Buffett recommends periodic investment in an S&P 500 index fund, which could turn a $400 monthly investment into $851,800 over 30 years [2][9] - The Vanguard S&P 500 ETF provides exposure to major companies like Apple, Nvidia, and Tesla, covering about 80% of domestic equities and 50% of global equities by market value [4] Performance Metrics - The S&P 500 returned 1,860% over the last 30 years, averaging 10.4% annually, which includes various market conditions [8] - Only 15% of large-cap funds outperformed the S&P 500 over the last three years, indicating that most professional money managers struggle to beat the index [5] Cost Efficiency - The Vanguard S&P 500 ETF has a low expense ratio of 0.03%, compared to the average U.S. ETF and mutual fund expense ratio of 0.34% [7] Future Outlook - Buffett believes that American business and a basket of stocks will be worth significantly more in the future, supporting the case for investing in an S&P 500 index fund [6] - The investment strategy of contributing $400 monthly could yield substantial returns, with projections of $77,900 in ten years and $287,700 in twenty years [9]