Buffett Recommends Low-Cost S&P 500 Funds as $114.75 Since 1942 Grew to $606,811
Updated
Updated · Yahoo Finance · Aug 23
Buffett Recommends Low-Cost S&P 500 Funds as $114.75 Since 1942 Grew to $606,811
3 articles · Updated · Yahoo Finance · Aug 23
Summary
Warren Buffett again urged ordinary investors to use low-cost S&P 500 index funds, presenting them as a simple retirement strategy instead of stock-picking or frequent trading.
His case rests on long-run U.S. market gains: Buffett noted the Dow rose from just above 100 when he bought his first stock in 1942 to about 52,000, and had set 24 record highs in 2026.
Buffett wrote that a hypothetical $114.75 invested in a no-fee S&P 500 index fund in 1942 would have reached $606,811 by January 2019 with dividends reinvested.
He warned that chasing fashionable assets or overcomplicating portfolios can turn investing into gambling, while broad index funds offer diversification across many companies in a single purchase.