Warren Buffett’s long-standing recommendation of a low-cost S&P 500 index fund has yielded an annualized return of 19.7% over the 60 years he led Berkshire Hathaway, according to a retrospective analysis by La República.
The figure underscores the enduring power of broad-market passive investing, a strategy Buffett has championed for decades as a superior alternative to active management for most investors.
Recent data shows a growing preference for passive vehicles, with some specialized ETFs, such as the Breakwave Tanker Shipping ETF, posting extraordinary gains of over 600% year-to-date amid shipping disruptions.
The performance metric aligns with the historical total return of the S&P 500, including dividends, over the same period.
This retrospective comes as investors increasingly turn to exchange-traded funds for portfolio construction.
Recent data shows a growing preference for passive vehicles, with some specialized ETFs, such as the Breakwave Tanker Shipping ETF, posting extraordinary gains of over 600% year-to-date amid shipping disruptions.
However, the S&P 500 index remains the benchmark for long-term equity growth.