Warren Buffett Says Buy This Vanguard Index Fund -- It Could Turn $400 Per Month Into $835,000 With Help From Nvidia, Apple, and Microsoft

1 week ago 3

Trevor Jennewine, The Motley Fool

Mon, December 15, 2025 astatine 4:05 AM CST 5 min read

Warren Buffett has often recommended that non-professional investors periodically bargain shares of an S&P 500 scale fund.
The Vanguard S&P 500 ETF offers casual vulnerability to galore of the astir influential companies successful the world, including Nvidia, Apple, and Microsoft.
The S&P 500 precocious 1,810% during the past 3 decades, which is equivalent to 10.3% annually, a gait that would crook $400 per period into $835,000 implicit 3 decades.
10 stocks we similar amended than Vanguard S&P 500 ETF ›

Warren Buffett, who took power of Berkshire Hathaway six decades ago, has earned a estimation arsenic 1 of the top investors successful American history. He has consistently fixed the aforesaid advice: Buy an scale money that tracks the S&P 500 (SNPINDEX: ^GSPC)

"In my view, for astir people, the champion happening to bash is to ain the S&P 500 scale fund," Buffett told attendees astatine Berkshire's yearly gathering successful 2021. He has suggested the Vanguard S&P 500 ETF (NYSEMKT: VOO).

Here's however that proposal could crook $400 invested monthly into $835,000 implicit 30 years.

An upward-moving greenish arrow laid atop Benjamin Franklin's face.

The Vanguard S&P 500 measures the show of the S&P 500, which tracks 500 ample U.S. companies. It includes worth stocks and maturation stocks from each 11 banal marketplace sectors, and covers astir 80% of home equities and 40% of planetary equities by marketplace value.

The scale money provides vulnerability to galore of the astir influential businesses successful the world. The apical 10 positions are listed by value below:

Nvidia: 8.4%
Apple: 6.8%
Microsoft: 6.5%
Alphabet: 5%
Amazon: 4%
Broadcom: 3%
Meta Platforms: 2.4%
Tesla: 2.1%
Berkshire Hathaway: 1.5%
JPMorgan Chase: 1.4%

One hazard associated with owning an S&P 500 scale money is the bonzer attraction of the underlying index. The apical 10 companies relationship for 41% of the S&P 500 by market-cap weight, which means a ample diminution successful 2 oregon 3 of those stocks could truly resistance connected the full index.

However, the apical 10 companies besides relationship for astir 33% of the S&P 500's earnings, truthful the statistic is not arsenic alarming arsenic galore pundits marque it retired to be. Their price-to-earnings multiples are supra average, but their beardown competitory positions warrant premium valuations.

There is simply a elemental crushed Warren Buffett believes an S&P 500 scale money is the champion mode for the mean capitalist to get banal marketplace exposure: Buying idiosyncratic stocks requires much enactment than astir radical are consenting to instrumentality on, and beating the S&P 500 is challenging adjacent for nonrecreational wealth managers.