This Warren Buffett-Recommended ETF Has Soared By 255% Over the Last 10 Years -- and History Says It Has Plenty of Room to Grow
Following Buffett's simple investment advice has paid off over the years.
Overview
In his 2013 letter to shareholders, Warren Buffett advised that most people should simply buy an S&P 500 Index Fund (SNPINDEX: ^GSPC). He suggested Vanguard's, which would include the Vanguard S&P 500 ETF (NYSEMKT: VOO). Investors who followed that advice would be up 255% over the past decade (13.5% annualized). At that rate, VOO would have grown a $10,000 investment into over $35,640.
History suggests that the S&P 500 and the index funds tracking it, such as VOO, have plenty of room to grow. However, the near-term ride could be bumpy, given the market's currently historically high valuation and concentration levels.
Image source: Getty Images.
Details
Source
Originally published at www.fool.com.