Warren Buffett Admits: The S&P 500 Might’ve Made Him Even Richer
“If you just put your money consistently into an S&P 500 index fund and let it ride, you would’ve done better than most professional investors—including me, at times.”
— Warren Buffett, Berkshire Hathaway Annual Meeting, 2020
Wait.
Did Warren Buffett—the billionaire investor behind Berkshire Hathaway—just say you might beat him with a boring index fund?
Yup. He did.
And that’s your cue to stop overthinking and start building wealth the simple way.
🧠 The Oracle’s Confession
Buffett, the man who built one of the greatest fortunes through smart investing, often praises low-cost index funds—specifically the S&P 500. He’s even gone on record saying that for most people, this strategy would outperform trying to pick winners.
And he’s not wrong.
Over time, the S&P 500 has delivered historical annual returns around 10%, proving that slow and steady still wins the race.
📈 What Makes the S&P 500 So Powerful?
- Instant diversification: You own 500 top U.S. companies.
- Built-in growth: The strongest companies remain; underperformers get replaced.
- Low fees: Index funds like VOO, SPY, and IVV have extremely low expense ratios.
- Compounding magic: Leave your money alone, and it works for you over time.
It’s not about timing the market. It’s about time in the market.
💸 Our Real Example: $50 a Week into VOO
We’ve been sharing our journey of investing $50 every week into VOO since May 2023.
As of now?
📊 19.07% unrealized gain.
Not by luck. Not by prediction. But by showing up consistently and letting the market work.
This is textbook dollar-cost averaging—a method Buffett himself endorses.
💼 Buffett’s Estate Plan? Index Funds.
In his will, Buffett instructs that 90% of his estate for his wife go into an S&P 500 index fund.
Translation: He trusts this method more than individual stocks.
So if it’s good enough for the world’s greatest investor…
🚀 How You Can Start Today
You don’t need to be rich to start investing. You just need a plan and $50.
- Open a brokerage account (Vanguard, Fidelity, Charles Schwab, E*TRADE)
- Choose an S&P 500 ETF (like VOO, SPY, or IVV)
- Set up automatic weekly transfers
- Let compound interest work its magic
💡 Bonus tip: Use a Roth IRA or Traditional 401(k) to get tax advantages while you invest.
🎯 Final Thought: Don’t Try to Be a Hero
You don’t need to pick the next Tesla or time the next recession.
You just need to:
- Start early
- Stay consistent
- Let compounding do the heavy lifting
If Buffett—the GOAT of investing—says the S&P 500 might’ve made him even richer, there’s a good chance it can do wonders for your financial future too.
Related Articles:
- From Sandwiches to Stocks: A Year of Investing $50 a Week in VOO
- How to Invest in VOO with Just $50 a Week: A Simple Guide to Growing Your Wealth
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