Warren Buffett, CEO of Berkshire Hathaway since 1965, manages a portfolio valued at $316 billion, including $277 billion in cash and various private businesses. Under his leadership, the company's stock has generated a compound annual return of 19.8% over 59 years.
Buffett advises average investors to consider exchange-traded funds (ETFs) like the Vanguard S&P 500 ETF and the SPDR S&P 500 ETF Trust, both of which Berkshire holds in its portfolio. A leading analyst predicts the S&P 500 could reach 15,000 by 2030, potentially yielding a 158% return for these index funds.
The S&P 500, representing 500 companies across multiple sectors, is weighted by market capitalization, with technology firms comprising 32.2% of the index. The top five holdings are actively involved in artificial intelligence, positioning them for future growth.
Tom Lee of Fundstrat Global Advisors forecasts significant market gains, attributing potential growth to demographic shifts and advancements in AI. He anticipates the S&P 500 will need to achieve a compound annual growth rate of 16.6% to meet his 2030 target.
Buffett's investment strategy and the performance of these index funds highlight the importance of diversified investment in the current market landscape.