But not all of its equity positions are single stocks. Berkshire Hathaway owns two exchange-traded funds (ETF), The SPDR S&P 500 ETF Trust (NYSEMKT: SPY) and the Vanguard S&P 500 ETF (NYSEMKT: VOO).
Buffett's biggest moneymaking ETF
Berkshire owns 39,400 shares of the SPDR S&P 500 ETF Trust (NYSEMKT: SPY), which is currently valued at nearly $22.6 billion. It also owns 43,000 shares of the Vanguard S&P 500 ETF (NYSEMKT: VOO), valued at nearly $22.7 billion.
He has often repeated that advice, and has specifically suggested the Vanguard S&P 500 ETF (NYSEMKT: VOO). Here's how that advice could turn $500 invested monthly into $986,900 over 30 years.
Through Berkshire Hathaway, he also owns two S&P 500 funds himself: The Vanguard S&P 500 ETF (NYSEMKT: VOO) and the SPDR S&P 500 ETF Trust (NYSEMKT: SPY).
SPY is more expensive with a Total Expense Ratio (TER) of 0.0945%, versus 0.03% for VOO. SPY is up 28.31% year-to-date (YTD) with +$7.13B in YTD flows. VOO performs better with 28.36% YTD performance, and +$103.99B in YTD flows.
There are 214 ETFs which contain Berkshire Hathaway, Inc.. All of these ETFs are listed in the table below. The ETF with the largest weighting of Berkshire Hathaway, Inc. is the SPDR S&P US Financials Select Sector UCITS ETF.
VOO has a consensus rating of Moderate Buy which is based on 400 buy ratings, 99 hold ratings and 5 sell ratings. What is VOO's price target? The average price target for VOO is $621.22. This is based on 504 Wall Streets Analysts 12-month price targets, issued in the past 3 months.
Index funds are best for most people
Despite making his fortune as an active investor, Buffett acknowledges that most people will get better results by investing in a broadly diversified low-cost index fund.
One potential timeless index fund you can buy and hold forever is the Vanguard S&P 500 ETF (VOO 1.29%). This exchange-traded fund (ETF) is my favorite index fund to gain exposure to the S&P 500 index, arguably the most extraordinary market index in the world.
While your investing choices are personal, there's one option that comes highly recommended by billionaire investor Warren Buffett: The S&P 500 index fund. Here's why it's such a fantastic investment, and how you could earn hundreds of thousands of dollars while barely lifting a finger. Image source: The Motley Fool.
Average Return
In the past year, QQQ returned a total of 25.74%, which is slightly higher than VOO's 24.33% return. Over the past 10 years, QQQ has had annualized average returns of 18.26% , compared to 13.04% for VOO. These numbers are adjusted for stock splits and include dividends.
Vanguard S&P 500 ETF
It also has a $325 billion pile of cash, which Buffett and his team can deploy when they find new opportunities.
Largest shareholders include Vanguard Group Inc, Jpmorgan Chase & Co, Bank Of America Corp /de/, Raymond James & Associates, Morgan Stanley, Envestnet Asset Management Inc, Goldman Sachs Group Inc, Jones Financial Companies Lllp, Acorns Advisers, LLC, and Wells Fargo & Company/mn .
Top Warren Buffett Stocks
Bank of America (BAC), 766.3 million. Coca-Cola (KO), 400 million. Kraft Heinz (KHC), 325.6 million. Apple (AAPL), 300 million.
The 90/10 rule in investing is a comment made by Warren Buffett regarding asset allocation. The rule stipulates investing 90% of one's investment capital toward low-cost stock-based index funds and the remainder 10% to short-term government bonds.
Warren Buffett, one of the world's most successful investors, has shared plenty of advice over his long career. But one piece of advice stands out as his top rule: “The first rule of investment is don't lose money.” And if you ask about the second rule?
VOO appeals to investors because of its diversification and focus on large-cap equities, which tend to be more stable and have a strong history of profitability compared with smaller, riskier companies. Large-cap stocks dominate the fund, providing exposure to stocks with a blend of stability and growth potential.
SPY has an expense ratio of 0.09%, which, while low, is still higher than that of VOO,'s 0.03%, one of the lowest expense ratios for S&P 500 ETFs. This makes VOO more cost-effective for long-term investors, as expense ratio differences compound over time and impact returns.
Warren Buffett has long recommended a low-fee S&P 500 tracker fund to amateur investors. Chamath Palihapitiya says it's become riskier as a few stocks now have an outsize pull on the index. Buffett mostly steers clear of tech names, but Apple has been his No. 1 stock for years.
He owns a small bit of each in his portfolio for Berkshire, too. The two investments held in Berkshire Hathaway's portfolio that Buffett recommends more than anything else are two S&P 500 index funds. The SPDR S&P 500 ETF Trust (NYSEMKT: SPY) and the Vanguard S&P 500 ETF (NYSEMKT: VOO).