Warren Buffett, the billionaire investor, has long believed in the strength of American companies. He advises everyday investors to focus on top U.S. businesses and hold their investments for the long term.
This approach has helped Buffett’s company, Berkshire Hathaway, outperform the S&P 500 for nearly six decades. His portfolio includes major companies like Apple, Bank of America, and Coca-Cola.
Buffett also recommends a simple, low-cost way for non-professional investors to benefit from the U.S. market: investing in the Vanguard S&P 500 ETF (VOO).
This exchange-traded fund tracks the S&P 500 index, giving investors exposure to America’s largest companies across various industries. The fund’s low expense ratio of 0.03% makes it an affordable choice.
By investing regularly—say $200 a month—into this ETF, investors can take advantage of compounding returns. Historically, the S&P 500 has returned about 10% annually.
If you start with $1,000 and add $200 each month for 40 years, your investment could grow to approximately $1.1 million. This shows the power of steady investing and patience.
Now is a good time to start because the S&P 500 recently dipped due to trade concerns but has begun to recover. While market returns can never be guaranteed, Buffett’s long-term strategy of investing in strong U.S. companies remains a reliable way to build wealth over time.
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