Warren Buffett Swears By Index Funds: What You’d Make If You Invested $100 a Week (2024)

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e=r.searchBoxForm.querySelector("[name=fr]"),n=r.searchBoxForm.querySelector("[name=fr2]");e&&r.config.searchBox&&r.config.searchBox.params&&r.config.searchBox.params.fr&&(e.value=i.searchBox.params.fr,e.disabled=!1),n&&r.config.searchBox&&r.config.searchBox.params&&r.config.searchBox.params.fr2&&(n.value=i.searchBox.params.fr2,n.disabled=!1),r.searchBoxForm.submit()}}),1e3)},r.recognition.onspeechstart=function(){},r.recognition.onspeechend=function(){r.recognition.stop()},r.recognition.onerror=function(){r.speechText&&(r.speechText.innerText=r.i18n.t("search.voice.recognition_error")),r.hideTrending(r),r.showRetryLink(r),r.errorAudio.play()},r.recognition.onaudiostart=function(){r.speechButtonContainer&&r.speechButtonContainer.classList.add("listening")},r.recognition.onaudioend=function(){r.speechButtonContainer&&r.speechButtonContainer.classList.remove("listening")},r.recognition.onsoundstart=function(){r.hideTrending(r),r.noSpeech=!1,r.speechButtonContainer&&(r.speechButtonContainer.classList.remove("listening"),r.speechButtonContainer.classList.add("speaking"))},r.recognition.onsoundend=function(){r.speechButtonContainer&&r.speechButtonContainer.classList.remove("speaking")},r.recognition.onstart=function(){r.recognitionInit(r),r.startRecognition(r)},r.recognition.onend=function(){r.isRecognitionStart=!1,0==r.noSpeech&&""==r.speechResult&&(r.speechText&&(r.speechText.innerText=r.i18n.t("search.voice.recognition_nomatch")),r.hideTrending(r),r.showRetryLink(r),r.errorAudio.play())},document&&document.dispatchEvent&&document.dispatchEvent(new Event("VOICE_JS_READY"))}}o.I18n=m,o.prototype.renderPermissionGuide=function(e){var n='\n

    \n

    \n

    \n

    \n

    \n

    \n

    \n

    '.concat(e.i18n.t("search.voice.permission_title"),'

    \n

    ').concat(e.i18n.t("search.voice.permission_text"),"

    \n

    \n

    \n

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    \n

    \n

    \n

    \n

    \n

    \n \n \n \n \n \n \n

    \n

    \n

    \n \n \n '.concat(e.i18n.t("search.voice.recognition_retry"),'\n

    \n

    \n

    \n

    \n

    \n

    \n ').concat(e.i18n.t("search.voice.trending_title"),'\n \n

    \n

    \n

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t,o,i,r=e.getConfig();if(n.ybar&&"desktop"===r.device&&(null===(t=r.bucketConfig)||void 0===t?void 0:t.highlight_searchassist)&&(null===(o=r.bucketConfig)||void 0===o?void 0:o.overlay_class)){n.ybar.setAttribute("data-ovrly-bkt",r.bucketConfig.overlay_class),null===(i=n.searchForm)||void 0===i||i.classList.add(Un[r.bucketConfig.overlay_class]);var a=document.createElement("div");a.classList.add(Un.overlay,Un[r.bucketConfig.overlay_class]),document.body.appendChild(a),e.onDestroy((function(){document.body.removeChild(a)})),e.addElementListener(n.searchForm,"focusout",(function(e){if(n.searchForm&&n.searchInput){var t=e.relatedTarget;t&&!n.searchForm.contains(t)&&window.YAHOO.SA&&window.YAHOO.SA.apps&&window.YAHOO.SA.apps[0]&&window.YAHOO.SA.apps[0].view.shown&&window.YAHOO.SA.apps[0].view.hide()}}))}}(e,n),zn(e,n),n.voiceSearchBtn&&function(e,n){var t=e.getConfig(),o=t.locale,i=function(){var e,t;(null===(t=null===(e=window.YAHOO)||void 0===e?void 0:e.Util)||void 0===t?void 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    Warren Buffett Swears By Index Funds: What You’d Make If You Invested $100 a Week (2024)

    FAQs

    What did Warren Buffett say about the S&P 500? ›

    Buffett's rationale behind endorsing S&P 500 index funds is rooted in their simplicity and effectiveness. He argues that attempting to outperform the market is futile for most investors, and instead, they should seek exposure to the broad U.S. stock market through low-cost index funds.

    What is the 70 30 Buffett rule investing? ›

    What Is a 70/30 Portfolio? A 70/30 portfolio is an investment portfolio where 70% of investment capital is allocated to stocks and 30% to fixed-income securities, primarily bonds. Any portfolio can be broken down into different percentages this way, such as 80/20 or 60/40.

    What is the 90 10 rule Warren Buffett 1 money savings tip for retirees? ›

    According to Buffett, you should invest 90% of your retirement funds in stock-based index funds. According to Buffett, the remaining 10% should be invested in short-term government bonds. The government uses these to finance its projects.

    What is the best low cost S&P 500 index fund? ›

    5 of the best S&P 500 index funds
    Index fundMinimum investmentExpense ratio
    Vanguard 500 Index Fund - Admiral Shares (VFIAX)$3,000.0.04%.
    Schwab S&P 500 Index Fund (SWPPX)No minimum.0.02%.
    Fidelity Zero Large Cap Index (FNILX)No minimum.0.0%.
    Fidelity 500 Index Fund (FXAIX)No minimum.0.015%.
    2 more rows
    Sep 3, 2024

    What if I invested $1000 in the S&P 500 20 years ago? ›

    Here's how much you would have now if you invested in the S&P 500 20 years ago, based on varying starting amounts: $1,000 would grow to $2,533. $5,000 would grow to $12,665. $10,000 would grow to $25,331.

    Can the S&P 500 make you a millionaire? ›

    As a result, the broad-market index has an excellent historical track record of generating wealth. Over its history, the S&P 500 has generated an average annual return of 9%, including re-invested dividends. At that rate, even a middle-class income is enough to become a millionaire over time.

    What is Warren Buffett's golden rule? ›

    "Rule No. 1: Never lose money. Rule No. 2: Never forget Rule No. 1."- Warren Buffet.

    What index fund does Buffett recommend? ›

    Instead, he believes most investors should periodically purchase shares of an S&P 500 index fund. "I recommend the S&P 500 index fund, and have for a long, long time to people. And I've never recommended Berkshire to anybody," Buffett told attendees at Berkshire's annual meeting in 2021. Investors should pay attention.

    What is the Buffett's two list rule? ›

    Buffett presented a three-step exercise to help streamline his focus. The first step was to write down his top 25 career goals. In the second step, Buffett told Flint to identify his top five goals from the list. In the final step, Flint had two lists: the top five goals (List A) and the remaining 20 (List B).

    What is the rule #1 of money? ›

    Rule 1: Never Lose Money

    This might seem like a no-brainer because what investor sets out with the intention of losing their hard-earned cash? But, in fact, events can transpire that can cause an investor to forget this rule.

    Does Warren Buffett recommend bonds? ›

    Warren Buffett Still Isn't a Fan of Bonds. Why He's Sticking With Stocks and Cash. Warren Buffett doesn't seem to have gotten the message that interest rates are heading lower.

    How much cash does Buffett keep? ›

    Just because Berkshire Hathaway holds nearly $200 billion in cash doesn't mean they can invest all of that cash if they find a big enough target. "I think of the cash, roughly half of it is legitimately deployable," Bloomstran said.

    What is the safest index fund? ›

    Best Low Risk Index Funds to Buy
    • Vanguard Total Stock Market Index Fund (NYSEARCA:VTI) ...
    • Vanguard 500 Index Fund (MUTF:VOO) ...
    • Invesco QQQ Trust (NASDAQ:QQQ) ...
    • Vanguard Total Bond Market Index Adm (MUTF:VBTLX) ...
    • Fidelity Blue Chip Growth (MUTF:FBGRX) ...
    • ProShares UltraPro QQQ (NASDAQ:TQQQ)
    Sep 29, 2023

    What is the best index fund for beginners? ›

    FNILX and QQQM are often described as some of the best index funds for beginner investors. But are they the cheapest? Sam Taube writes about investing for NerdWallet. He has covered investing and financial news since earning his economics degree from the University of Maryland in 2016.

    Which index fund has the highest return? ›

    The SPDR S&P Dividend ETF (SDY -0.37%) is a top-performing index fund for income-oriented investors. The dividend-weighted fund's benchmark is the S&P High Yield Dividend Aristocrats® Index, which tracks 135 stocks with the highest dividend yields in the S&P Composite 1500 Index.

    Why you shouldn't just invest in the S&P 500? ›

    Lack of Global Diversification

    The S&P 500 is all US-domiciled companies that over the last ~40 years have accounted for ~50% of all global stocks. By just owning the S&P 500 you miss out on almost half of the global opportunity set which is another ~10,000 public companies.

    Should I buy S&P 500 or Berkshire Hathaway? ›

    Key Points. Berkshire Hathaway has consistently outperformed the S&P 500 since 1965. The Vanguard S&P 500 ETF has generated bigger gains over the past two decades when factoring in reinvested dividends. Berkshire Hathaway faces more unpredictable headwinds than the latter.

    What does Warren Buffett say about investing in the stock market? ›

    Key Takeaways

    Buffett follows the Benjamin Graham school of value investing which looks for securities with prices that are unjustifiably low based on their intrinsic worth. Buffett looks at companies as a whole rather than focusing on the supply-and-demand intricacies of the stock market.

    Who owns most of the S&P 500? ›

    The passive index fund industry is dominated by BlackRock, Vanguard, and State Street, which we call the “Big Three.” We comprehensively map the ownership of the Big Three in the United States and find that together they constitute the largest shareholder in 88 percent of the S&P 500 firms.

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