Warren Buffett Advocates S&P 500 ETF Strategy for Wealth Building

Warren Buffett's investment advice has resurfaced with compelling simplicity: regular contributions to an S&P 500 index fund, particularly the Vanguard S&P 500 ETF, could transform $1,000 monthly investments into approximately $252,000 over a decade. The Berkshire Hathaway chairman, despite his legendary stock-picking prowess, consistently recommends this passive approach for retail investors.

Buffett's philosophy hinges on the S&P 500's historical performance—a near-20% annualized return for Berkshire itself over decades. At recent shareholder meetings, he emphasized that most lack the time or expertise to outperform broad market indices through individual stock selection. The strategy represents a paradigm shift in mainstream investment counsel, coming from an active manager who built his fortune through concentrated bets.