If I Were in My 40s, I'd Buy This Vanguard ETF Warren Buffett Recommended and Hold It Forever
Buffett is a big fan of low-cost index funds for everyday investors.
Overview
Warren Buffett served as chief executive officer of the Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) holding company between 1965 and 2025. Over that 60-year period, his investment decisions turned it into a $1 trillion conglomerate with numerous wholly owned subsidiaries, a $350 billion stock portfolio, and more than $300 billion in cash holdings.
Berkshire stock returned 19.7% per year under Buffett, so an investment of $1,000 in 1965 would have been worth $48.4 million by the time he stepped down. But he was a full-time professional, so he always knew the average investor would struggle to replicate his results. Therefore, he consistently advocated for exchange-traded funds (ETFs) that track a diversified index like the S&P 500 (SNPINDEX: ^GSPC).
Details
In his 2013 annual letter to shareholders (published in February 2014), Buffett specifically recommended the Vanguard S&P 500 ETF (NYSEMKT: VOO) because of its extremely low fees. While young investors in their 20s and 30s can afford to take risks, those in their 40s might be thinking about carving a path to a financially secure retirement, which is where Buffett's advice really shines. Here's why I'd be buying the Vanguard ETF if I were in that age group.
Source
Originally published at www.fool.com.