Warren Buffett Has Recommended This 1 Investment for Decades. History Says He's Been Right Every Single Time.
Buffett is a big proponent of investing in low-cost index ETFs like the Vanguard S&P 500 ETF.
Warren Buffett Has Recommended This 1 Investment for Decades. History Says He's Been Right Every Single Time.
Overview
Warren Buffett is considered one of the greatest investors of all time. However, even he believes that one of the smartest investments someone can make is in an exchange-traded fund (ETF) that tracks the S&P 500 index, like the Vanguard S&P 500 ETF (NYSEMKT: VOO).
In fact, back in 2007, Buffett offered hedge fund managers a $500,000 bet that the S&P 500 index would outperform hedge funds over the next decade. Only one manager, Ted Seides, a former co-manager of Protégé Partners, took him up on his offer. Buffett invested in a low-cost index fund, while Seides chose a group of hedge funds.
Details
Buffett's bet won in a landslide, and the money was eventually donated to charity. The Oracle of Omaha said he was willing to make another active-versus-passive investing bet, though it doesn't appear anyone took him up on it. Three years after the bet concluded, Buffett said at Berkshire Hathaway's 2020 annual meeting that "for most people, the best thing to do is own the S&P 500 index fund."
Source
Originally published at www.fool.com.
