Key Points
Warren Buffett led Berkshire Hathaway (NYSE: BRKA, NYSE: BRKB) for 60 years, transforming it into a $1 trillion conglomerate with a stock portfolio valued at over $350 billion and $365 billion in cash. Under his management, the company achieved an annual return of 19.7%, meaning a $500 investment in 1965 would have grown to approximately $24 million by 2025.
Buffett has consistently recommended that average investors consider low-cost exchange-traded funds (ETFs), particularly the Vanguard S&P 500 ETF (NYSEMKT: VOO), which he specifically endorsed in 2014. This ETF provides exposure to the S&P 500 index, known for its returns of 10.7% since its inception in 1957 and 13.9% since Buffett’s recommendation.
As of July 31, 2026, the S&P 500 is dominated by the information technology sector, making up 36.6% of the index, with major companies like Apple, Microsoft, and Nvidia. Current market conditions, fueled by the rise of AI technologies, have significantly boosted these returns, making the Vanguard ETF a popular long-term investment choice.
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