Warren Buffett endorses Vanguard S&P 500 ETF as top low‑cost investment

Warren Buffett, the long‑time CEO of Berkshire Hathaway, advises investors to keep 90% of cash in a low‑cost S&P 500 index fund and 10% in short‑term government bonds. He specifically recommends Vanguard’s S&P 500 ETF (VOO), which carries an expense ratio of just 0.03%. Buffett argues that a simple buy‑and‑hold approach to the broad market outperforms active trading and individual stock picking, as the index automatically rebalances to reflect the shifting economy. The recommendation reflects his long‑standing philosophy of investing in high‑quality businesses at reasonable prices and holding them indefinitely.

Buffett’s track record includes both major successes and occasional missteps, but he maintains that a handful of truly good decisions drive most of his results. His endorsement of the Vanguard ETF underscores the appeal of inexpensive, diversified exposure to the U.S. economy for most investors.