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Buffett has long pointed investors to S&P 500 index funds
The article says Buffett even placed a $1 million bet in 2008 that an S&P 500 fund would outperform five actively managed hedge funds over 10 years.
A new Yahoo Finance piece revisits Warren Buffett’s long-running stance that most investors should focus on quality businesses but hold them through major market cycles, highlighting his preference for low-cost S&P 500 index exposure.
According to the article, Buffett recommended owning an S&P 500 index fund for most people, and it cites the idea that the trustee of his estate would invest 90% of his cash in an S&P 500 index fund for his wife after his passing.
The article also points to a prior bet Buffett made, saying he wagered $1 million in 2008 that an S&P 500 fund would outperform a group of five actively managed hedge funds over the following 10 years.
It further notes that the S&P 500’s total return has been nearly 750% since January 2000, while acknowledging that short-term volatility can be severe, including a drop of more than 50% during the Great Recession, with the index later recovering.
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