Buffett Urges Healthy Companies and S&P 500 ETFs After 330% 10-Year Gain
Updated
Updated · The Motley Fool · May 27
Buffett Urges Healthy Companies and S&P 500 ETFs After 330% 10-Year Gain
4 articles · Updated · The Motley Fool · May 27
Buffett’s central advice is to buy businesses with durable long-term fundamentals, not stocks chased for short-term price moves.
In Berkshire Hathaway’s 2021 shareholder letter, he said he and Charlie Munger were “business-pickers,” arguing healthy companies are better equipped to withstand recessions and market volatility.
For most investors, Buffett has repeatedly pointed to S&P 500 ETFs—calling them “the best thing” at Berkshire’s 2020 annual meeting—because they offer low-maintenance exposure to broad market growth.
The case for that approach rests on the index’s record: the S&P 500 has delivered more than 330% total returns over the past decade, though ETF investors should expect market-matching rather than market-beating gains.
How much wealth is lost by choosing a simple S&P 500 ETF over picking individual stocks?
Is Buffett's 'business-picker' strategy still the best path to wealth in an AI-driven market?
With Berkshire's $373B cash pile, what move could its new CEO make to prove he is the next Buffett?