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Buffett favors low-cost S&P 500 index funds for long-term investing

The strategy centers on broad diversification through a single purchase, which the SEC says can reduce portfolio risk though it cannot prevent losses.

Tuesday, August 25, 2026 · Written up by our desk · ETFs

Yahoo Finance says Warren Buffett argues that everyday investors can build wealth by focusing on productive American businesses, and he points to a simple, repeatable approach tied to the S&P 500.

In the coverage, Buffett is described as warning against needlessly complicated strategies and constant trading, saying investing that becomes too complex starts to resemble gambling, even if he personally has identified exceptional individual companies.

According to the article, Buffett’s regular recommendation is a low-cost S&P 500 index fund, which he framed as a way to invest across a large collection of companies in one transaction.

The piece also notes that the SEC says diversification through an index fund can reduce portfolio risk, and it cites popular options including the Vanguard S&P 500 ETF (VOO) and the iShares Core S&P 500 ETF (IVV).

Latest closeS&P 500 7,785.76 ▼0.2%

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