1 Warren Buffett Quote That Makes Me Excited to Buy the Vanguard S&P 500 ETF -- Even at Record Highs

Warren Buffett's timeless wisdom just gave ETF investors the ultimate green light—even as markets hit unprecedented peaks.

The Oracle's Golden Nudge

Buffett's legendary advice cuts through market noise like a laser. His endorsement of index investing bypasses Wall Street's complexity—pushing investors toward simple, proven strategies instead of chasing fleeting trends.

Record Highs? No Sweat.

Market peaks trigger panic for some. For savvy players? They're mere milestones. Buffett's philosophy reinforces that timing perfection matters less than time in market—a reality that humbles day traders and overconfident fund managers alike.

Vanguard's Stealth Advantage

Low fees compound quietly. Broad exposure diversifies risk silently. This ETF embodies what Buffett preaches: boring execution beats flashy speculation every time. Meanwhile, hedge funds charge 2% for subpar returns—but hey, those yacht payments aren't going to fund themselves.

The Verdict: Embrace the Boring

In a world obsessed with crypto moonshots and meme stocks, Buffett's quote remains the ultimate antidote to FOMO. Sometimes the smartest move is the simplest one—even when it feels too obvious to be brilliant.

Image source: The Motley Fool.

His reasoning? "American business -- and consequently a basket of stocks -- is virtually certain to be worth far more in the years ahead."

This quote from his 2016 letter toshareholders is equally valid, no matter what the market is doing now. Over long periods, the S&P 500 has delivered 9% to 10% annualized returns, and there's no reason to believe this will change.

Buffett's favorite approach to index fund investing

However, it's also worth noting that Buffett has also advised investors not to put all of their money in at once. One of his quotes about index fund investing is, "Just pick a broad index like the S&P 500. Don't put your money in all at once; do it over a period of time."

One specific strategy Buffett has advocated is to average into an index fund over 10 years. In other words, instead of aiming to invest $50,000 in the S&P 500 today, maybe plan to invest $5,000 every year for the next decade as a way of dollar-cost averaging. Doing so prevents you from overinvesting when the market is a bit frothy, and mathematically will result in a solid average price over time.