What Vanguard funds does Warren Buffett own?
I think we can reasonably conclude that Buffett's favorite fund of these two is the Vanguard S&P 500 ETF.
I think we can reasonably conclude that Buffett's favorite fund of these two is the Vanguard S&P 500 ETF.
Key Points. Warren Buffett made his fortune by investing in individual companies with great long-term advantages. But his top recommendation for anyone is to buy a simple index fund. Buffett's recommendation underscores the importance of diversification.
2 Buffett stocks to buy: Visa and Mastercard
Investors can buy Visa (NYSE: V) and Mastercard (NYSE: MA) without hesitation. Combined, they make up less than 1% of Berkshire's portfolio, but they have been massive winners historically. In the past decade, Visa shares are up 410% and Mastercard shares are up 535%.
Warren Buffet's 2013 letter explains the 90/10 rule—put 90% of assets in S&P 500 index funds and the other 10% in short-term government bonds.
Buffett is also uninterested in gold. In his 2011 letter to shareholders, he noted that gold has two significant shortcomings, “being neither of much use nor procreative.” “If you own one ounce of gold for an eternity, you will still own one ounce at its end.
Vanguard Russell 1000 Growth Index Fund (VRGWX)
VRGWX's 10-year average annual return beats the S&P 500's return over the same period. In fact, it was the second-best-performing diversified Vanguard stock fund over the past decade.
VHYAX-Vanguard High Dividend Yield Index Fund Admiral Shares. Vanguard.
While both institutions offer robo-advisors, Vanguard's Personal Advisor Services, which is available to clients who can meet a $50,000 account minimum, offers a little more hands-on investment guidance and assistance with portfolio construction. Vanguard also has slightly lower expense ratios on its index funds.
In Warren Buffett's current portfolio as of 2023-12-31, the top 5 holdings are Apple Inc (AAPL), Bank of America Corp (BAC), American Express Co (AXP), Coca-Cola Co (KO), Chevron Corp (CVX), not including call and put options. Warren Buffett did not buy any new stocks in the current portfolio.
What does Warren Buffett drive?
By all accounts, Buffett lives a frugal and simple lifestyle, and as such chooses to drive a 2014 Cadillac XTS.
Visa Inc (NYSE:V)
In addition to Visa, Warren Buffett also enjoys dividends from Chevron Corp (NYSE:CVX), Coca-Cola Co (NYSE:KO) and American Express Company (NYSE:AXP). In its October 2023 investor letter, Lakehouse Capital stated the following regarding Visa Inc.
Two famous fund managers have large share positions in Snowflake (SNOW) stock. On the other hand, investors may be concerned about Snowflake's decelerating revenue growth.
Globe Life 831,014 shares sold (entire position sold)
Valuation looks to be the most sensible reason behind Buffett & Co.'s decision to sell. Shares of the company more than doubled following the March 2020 COVID-19 crash, sending its price-to-book value to nearly 300% during the fourth quarter.
Consider investing in an S&P 500 index fund
An S&P 500 index fund aims to mirror the performance of the S&P 500 index. Buffett's retirement strategy, known as the 90/10 strategy, involves allocating 90% of retirement funds to a low-cost S&P 500 index fund and the remaining 10% to low-risk short-term government bonds.
A 70/30 portfolio is an investment portfolio where 70% of investment capital is allocated to stocks and 30% to fixed-income securities, primarily bonds.
“One bequest provides that cash will be delivered to a trustee for my wife's benefit,” he wrote. “My advice to the trustee could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund.” Buffett recommended using Vanguard's S&P 500 index fund.
In fact, even Buffett's company had once invested in a gold miner. In the second quarter of 2020, Berkshire bought 20.9 million shares of Barrick Gold Corp (GOLD), one of the largest gold mining companies in the world. However, it was not a long-term investment.
Warren Buffett does not invest in gold. He has invested almost $1 billion in silver, so the reason for his aversion is not simply a dislike for precious metals. The explanation for Buffett's dislike of gold and for his enthusiasm about silver stems from his basic value investing principles.
Over 30 years ago, Warren Buffett, CEO of Berkshire Hathaway, made his first purchase of silver in anticipation of the metal's demonetization by the U.S. Government. Since that time he has followed silver's fundamentals but no entity he manages has owned it.
What funds does Dave Ramsey invest in?
I put my personal 401(k) and a lot of my mutual fund investing in four types of mutual funds: growth, growth and income, aggressive growth, and international.
The Vanguard 500 Index Fund Admiral Class (VFIAX) and the SPDR S&P 500 ETF (SPY) are similar investment products. Both track the S&P 500, a U.S. stock index comprising 500 companies with the largest market capitalizations.
The four funds, each with a different allocation, target various risk-based objectives. The Income Fund is the most conservative and seeks to provide current income and some capital appreciation.
Best Vanguard Funds for Aggressive Investors: Vanguard Explorer (VEXPX) Click to Enlarge If you want to turn up the growth potential and you want to go all-the-way aggressive, look no further than Vanguard Explorer (MUTF:VEXPX).
While Fidelity wins out overall, Vanguard is the best option for retirement savers. Its platform offers tools and education focused specifically on retirement planning.
