Warren Buffett says "own the S&P 500 index fund" is best for most investors

Warren Buffett, the chairman of Berkshire Hathaway, has consistently recommended that average investors place their money in a fund that mirrors the S&P 500 index. He offered this advice during his company’s 2020 annual meeting. The suggestion is backed by a famous 2008 bet in which an S&P 500 fund earned roughly 126% over ten years, far surpassing a group of five hand-picked hedge funds that averaged about 36%. Buffett also revealed in 2013 that upon his death, 90% of the cash left for his wife would be placed in such a fund, specifically a Vanguard product. The S&P 500 index fund has generated positive total returns in every 20-year stretch since 1919, offering broad diversification and long-term stability for hands-off investors, though it does not typically produce the highest possible gains.