Had You Parked $10,000 in This Vanguard ETF When Warren Buffett Recommended It in 2014, Here's How Much You'd Have Today
Despite his incredible ability to pick stocks, Warren Buffett consistently advocates for low-cost index funds.
Had You Parked $10,000 in This Vanguard ETF When Warren Buffett Recommended It in 2014, Here's How Much You'd Have Today
Overview
Warren Buffett is one of the world's most iconic investors. He served as the chief executive officer of the Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) holding company from 1965 to 2025. It grew into a $1 trillion conglomerate over that 60-year period, with numerous subsidiaries and a $335 billion stock portfolio.
During Buffett's tenure, Berkshire stock delivered a compound annual return of 19.7%, meaning an investment of $1,000 in 1965 would have grown into a whopping $48.4 million by the time he stepped down. However, Buffett was a full-time professional, so he knew the average investor would struggle to replicate his performance.
Details
As a result, he often recommends investors buy an exchange-traded fund (ETF) that tracks an index like the S&P 500 (SNPINDEX: ^GSPC), instead of picking individual stocks. In Berkshire's 2013 annual report (published in February 2014), he even specifically suggested the Vanguard S&P 500 ETF (NYSEMKT: VOO), because of its extremely low cost.
Source
Originally published at www.fool.com.
