Investment Growth: How a $5,000 Stake in Warren Buffett’s Recommended Vanguard ETF Since 2014 Would Flourish Today

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Warren Buffett’s Legacy at Berkshire Hathaway

Warren Buffett has led Berkshire Hathaway (NYSE: BRKA, BRKB) for 60 years, from 1965 until 2025, achieving a $1 trillion valuation and a $357 billion investment portfolio. Under his leadership, the company’s stock delivered a compound annual return of 19.7%, meaning a $500 investment in 1965 would now be worth approximately $24 million.

Buffett consistently advocated for index funds, particularly recommending the Vanguard S&P 500 ETF (NYSEMKT: VOO) in its 2013 annual report due to its low fees. Since then, an investment of $5,000 in this ETF would have grown to about $24,344, with an average annual return of 14.1% over the past 12 years.

The S&P 500 index itself has delivered a compound annual return of 10.7% since its inception in 1957, but significant contributions have come from technological growth sectors, including AI and cloud computing. The ETF’s low expense ratio of 0.03% further enhances returns for investors.

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