Warren Buffett stepped down as Berkshire Hathaway chairman at 96 after turning a failing textile mill into a near-$1 trillion company. He tells most people to skip stock picking and put 90% in a low-cost S&P 500 index fund instead, even for their own families' inheritance.
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Warren Buffett made the greatest stock-picking fortune in history. His advice to you is, stop picking stocks. That's like LeBron James saying, honestly, just take the stairs. Buffett stepped down as chairman of Berkshire Hathaway at 96 this week. He turned a dying textile company into a conglomerate worth roughly $1 trillion. From 1965 through 2024, Berkshire compounded at about twice the annual rate of the S&P 500. That's not beating the market. That's taking the market behind Dairy Queen and stealing its lunch money. But Buffett has repeatedly said that most ordinary investors should use a low-cost S&P 500 index fund. His instructions for the money left to his wife were simple: 90% in a low-cost S&P 500 index fund and 10% in short-term government bonds. Not Berkshire Hathaway. Apparently Warren Buffett's final stock tip is do not try to be Warren Buffett.