Warren Buffett Has Endorsed the Same Investment for Decades. History Backs Him Up.

Warren Buffett has spent decades arguing for a simple long-term investment approach, despite his reputation for stock picking. In the story, Buffett—retired CEO of Berkshire Hathaway—backs the idea that most retail investors should buy an index fund tracking the S&P 500 and hold indefinitely. He made the case in 1993, writing that investors without the skills to evaluate individual firms could outperform many professionals by using an index fund. More than twenty years later, Buffett placed a 10-year bet with Ted Seides of Protégé Partners that a low-cost Vanguard S&P 500 fund would beat a selection of hedge funds chosen by a professional. The index fund won easily.