Quick answer: The fund Warren Buffett has recommended for years is a low-cost Vanguard S&P 500 index fund. It comes in two common forms: the Vanguard S&P 500 ETF (ticker VOO) and the Vanguard 500 Index Fund Admiral Shares. Buffett's reasoning is simple: most people can't beat the market by picking stocks, so owning the whole S&P 500 cheaply is the smarter default.
Searches for this topic have climbed again after Buffett stepped down as Berkshire Hathaway chairman in September, which put his investing advice back in the spotlight. Here's what he actually said, why it still matters, and what to know before acting on it.
The advice that gets quoted most comes from his 2013 shareholder letter. <cite index="106-1">Buffett advised that most people should simply buy an S&P 500 index fund, and he suggested Vanguard's.</cite> He was describing instructions for his own estate, telling the trustee to put the bulk of the money in a very low-cost S&P 500 index fund and a small slice in short-term government bonds.
He repeated the message in public. <cite index="108-1">At Berkshire's 2021 shareholder meeting, he said that for most people the best move is owning an S&P 500 index fund.</cite>
It's a striking position from a man who built his fortune picking individual companies. <cite index="114-1">Buffett doesn't advocate that strategy for most people, and instead thinks they should buy the S&P 500 index and hold it indefinitely.</cite> His own track record shows how hard stock picking is to repeat: <cite index="108-1">Berkshire stock returned 19.7% annually from 1965 to 2025, nearly double the S&P 500's 10.5%.</cite> Almost no one matches that, which is exactly his point.
He also backed the idea with a famous wager. <cite index="115-1">In 2007 he bet that a low-cost S&P 500 index fund would outperform a hand-picked portfolio of hedge funds over ten years, and the index fund won decisively.</cite>
Both options track the same index, so the main difference is how you buy them.
<cite index="106-1">Investors can access Vanguard's S&P 500 fund as an ETF or as a mutual fund.</cite> For its size, the fund is hard to ignore: <cite index="115-1">VOO held $979 billion in assets as of June 30, 2026.</cite>
Past results are not a promise, but the numbers explain the popularity. <cite index="109-1">The S&P 500 has delivered a compound annual return of 10.7% since 1957, and about 13.9% a year since Buffett recommended the Vanguard fund in early 2014, driven largely by tech.</cite>
An index fund isn't risk-free, and recent coverage has pointed out a few things:
What Vanguard fund does Warren Buffett recommend? A low-cost Vanguard S&P 500 index fund, available as the ETF VOO or as the Admiral Shares mutual fund.
Does Buffett own the fund himself? Buffett mostly holds individual stocks through Berkshire. His recommendation is aimed at everyday investors and his own estate plan, rather than a description of Berkshire's portfolio.
Is it a good fit for beginners? Many people consider it a simple starting point because it's diversified and low-cost, but your timeline, goals and risk tolerance matter more than any single recommendation.
Can I invest a small amount every month? Yes. Regular monthly investing is a common way people use these funds, and many brokerages allow fractional shares.
Buffett's message has stayed consistent for decades: keep costs low, stay diversified, and be patient. A Vanguard S&P 500 fund is the clearest example of that philosophy.
This article is for general information only and isn't financial advice. Consider your own situation or speak with a licensed financial advisor before investing.