Key Points

Warren Buffett expanded Berkshire Hathaway into a $1 trillion company from 1965 to 2025.
Buffett routinely advises everyday investors to use index funds for reliable long-term gains.
Back in early 2014 he highlighted the Vanguard S&P 500 ETF for its minimal fees, and buyers at that time have seen strong results since.

Warren Buffett stands out as one of the most recognized figures in investing. He led Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) as chief executive from 1965 through 2025, building it into a $1 trillion enterprise that includes many subsidiaries plus a $335 billion equity portfolio.

Over his time at the helm Berkshire shares posted a 19.7 percent compound annual return, turning a $1,000 stake from 1965 into roughly $48.4 million by his departure. Yet Buffett understood that most people lack the time or expertise to match that record.

Consequently he regularly urges investors to purchase an exchange-traded fund tracking a broad benchmark such as the S&P 500 (SNPINDEX: ^GSPC) rather than selecting single stocks. In Berkshire's 2013 annual report released in February 2014 he specifically endorsed the Vanguard S&P 500 ETF (NYSEMKT: VOO) because of its rock-bottom expenses.

An investor who placed $10,000 in the fund at the time of that recommendation would hold approximately $42,887 today after modest costs.

The S&P 500 spans 500 firms across 11 economic sectors and therefore offers broad diversification. Strict rules govern entry, including consistent profits and a market value of at least $22.7 billion, after which a selection committee makes the final decision to preserve quality.

Weighting follows market capitalization, giving larger firms greater sway. That explains why information technology carries the heaviest allocation, driven by Nvidia, Apple, Microsoft, Broadcom, and Micron Technology whose combined value reaches $15.4 trillion.

Here are the five largest sectors in the Vanguard S&P 500 ETF along with their allocations and top holdings as of late May 2026.

Sector	Vanguard ETF Sector Weighting	Largest Companies
Information Technology	38.6%	Nvidia, Apple, Microsoft
Financials	11.3%	Berkshire Hathaway, JPMorgan Chase, Visa
Communication Services	10.4%	Alphabet, Meta Platforms, Netflix
Consumer Discretionary	9.7%	Amazon, Tesla, Home Depot
Industrials	8.3%	Caterpillar, GE Aerospace, GE Vernova

The remaining sectors cover healthcare, consumer staples, energy, utilities, materials, and real estate.

Since 1957 the S&P 500 has delivered a 10.5 percent compound annual return including dividends. Since Buffett's 2014 endorsement the pace has risen to 12.9 percent annually. That performance would have converted a $10,000 investment into roughly $42,887 today before negligible fees. The ETF's expense ratio stands at just 0.03 percent, equating to only $3 per year on a $10,000 holding.

Comparable gains remain plausible ahead given momentum in artificial intelligence and other emerging fields such as self-driving cars, robotics, and quantum computing. An index fund like the Vanguard S&P 500 ETF supplies exposure to these growth areas while spreading risk across hundreds of holdings in steadier segments of the economy.

Buffett's counsel therefore continues to hold value more than a decade later.