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Warren Buffett, known for his preference for individual stocks, actually holds a favorable view of ETFs, particularly those like the Vanguard ETF.
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His investment philosophy, which emphasizes simplicity, diversification, low costs, and a long-term approach, is well-suited to Vanguard’s offerings.
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Buffett often recommends that most investors simply buy and hold the S&P 500 for the best results.
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10 stocks we like better than Vanguard S&P 500 ETF ›
Warren Buffett has been a strong advocate of long-term, low-cost investing grounded in solid fundamentals for many years. His main holdings in Berkshire Hathaway include high-caliber companies like Apple, American Express, and Bank of America. These are all firms with robust balance sheets and cash flow, positioning them well within their industries.
Some investors, drawn to Buffett’s approach, might prefer in-depth research into individual stocks. But what about those who want a more hands-off investing style?
Buffett has insights for those investors as well.
He insists on keeping strategies simple, diversified, and budget-friendly. Historically, he’s stressed the importance of investing in the S&P 500. For this reason, the Vanguard S&P 500 ETF is an investment avenue he genuinely endorses.
Buffett has consistently suggested that investing in the S&P 500 is often the most beneficial strategy for the average investor, even recommending it for his wife to follow in case of his passing.
In a letter to Berkshire shareholders in 2013, he emphasized:
…Ignore the chatter, minimize costs, and invest in stocks like you would on your farm.
With this, Buffett highlights a key principle he’s championed for years: high fees and emotional responses can severely impact investment outcomes. Rather than attempting to outsmart the market, he advocates for simply buying and holding a varied portfolio of America’s top companies at minimal costs.
His support for Vanguard and the VOO ETF, which debuted in 2010, aligns with this straightforward philosophy. Vanguard’s simple and low-cost approach typically yields favorable results for most investors.
During Berkshire Hathaway’s 2025 Annual Meeting, Buffett expressed indifference towards the market fluctuations triggered by the April 1st tariff announcement from President Trump.
This was notable, especially since the S&P 500 was down over 15% at that moment.
I don’t fear the things that others fear financially. …Let’s say Berkshire drops 50% next week. I see it as a great opportunity and don’t mind it at all…
Buffett’s remarks reinforced his long-term view, always seeking value. While a 50% decline would trigger panic for many, Buffett sees it as a chance to purchase valuable assets at a discount. His focus is on acquiring quality assets at reasonable prices, avoiding emotional pitfalls.
This isn’t a direct nudge to invest in the S&P 500, but for those wanting to adopt a similar long-term mindset, the Vanguard S&P 500 ETF appears to be a good choice. Resist the urge to try timing the market and instead focus on taking advantage of long-term growth through reliable blue-chip stocks.
Warren Buffett has previously indicated that investing in the S&P 500 represents a solid choice for most new investors, even naming the Vanguard S&P 500 ETF as one of his favorites.
For one of the most successful investors who often focuses on single stocks, this endorsement carries considerable weight.
The fundamental investment principles of simplicity, diversification, low cost, and a long-term outlook with VOO completely match Buffett’s investment philosophy.
Before jumping into Vanguard S&P 500 ETF shares, consider this:
The analyst team at Motley Fool Stock Advisor has identified what they believe are the best stocks investors should consider right now, and the Vanguard S&P 500 ETF didn’t make the cut. Instead, these ten alternatives might offer significant returns over the coming years.
For example, if you had invested $1,000 in Netflix back when it was recommended, it would now be worth about $490,703. Or with Nvidia, that same initial investment would be a staggering $1,157,689.
However, keep in mind that the total average return of the Stock Advisor has been an impressive 966%, far exceeding the S&P 500’s 194% return.
Don’t miss our latest Top 10 list.
*Stock Advisor will return on January 3, 2026.
Bank of America and American Express are advertising partners of Motley Fool Money. The Motley Fool recommends Apple, Berkshire Hathaway, and Vanguard S&P 500 ETFs.
The Vanguard ETF that Warren Buffett’s comments suggest is a top pick today.
