What two ETFs are good enough for Warren Buffett? (2024)

What two ETFs are good enough for Warren Buffett?

Buffett's favorite ETF

What is Warren Buffett's favorite way to invest?

Delve into the Berkshire chairman and CEO's investment strategy. Warren Buffett is undoubtedly one of the most respected investors of all time. On paper, Buffett's investment strategy is pretty simple: Buy businesses, not stocks.

Is two ETFs enough?

For most personal investors, an optimal number of ETFs to hold would be 5 to 10 across asset classes, geographies, and other characteristics.

Why does Warren Buffett invest in VOO?

A stickler for value, Buffett is likely a fan of the low fees that both of these ETFs feature. VOO has an expense ratio of just 0.03%, while SPY charges 0.09%. Both are extremely low fees, but it has to be said that VOO is cheaper.

What is Warren Buffett's 2 list strategy?

Buffett's Two Lists is a productivity, prioritisation and focusing approach where you write down your top 25 goals; circle your 5 highest priorities; then focus on those 5 while 'avoiding at all costs' doing anything on the remaining 20.

Should I invest in 2 ETFs?

Keeping it simple. One option you can consider would be using two ETFs to help provide a balanced, diversified portfolio of stocks and bonds: A total world stock market ETF. A total bond market ETF.

What does Warren Buffett invest in 2023?

Throughout 2023, Buffett consistently added more shares to one of Berkshire's top holdings, Occidental Petroleum (OXY 0.68%). Berkshire Hathaway established its position in the company when it put up $10 billion in capital to facilitate Occidental's acquisition of Anadarko.

What index fund does Buffett recommend?

Not surprisingly, investors often seek stock market advice from Buffett, but readers may be surprised to learn Buffett has consistently offered the same advice, as he reminded attendees at Berkshire's annual meeting in 2021: "I recommend the S&P 500 index fund, and have for a long, long time to people."

What is Warren Buffett's 90 10 rule?

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.

What ETF does Warren Buffett hold?

Most of Warren Buffett's portfolio through his holding company Berkshire Hathaway is comprised of individual stocks. He does own two ETFs, though, both of which are S&P 500 ETFs: the Vanguard S&P 500 ETF (VOO 1.03%) and the SPDR S&P 500 ETF Trust (SPY 1.05%).

What is the optimal number of ETFs?

The majority of individual investors should, however, seek to hold 5 to 10 ETFs that are diverse in terms of asset classes, regions, and other factors. Investors can diversify their investment portfolio across several industries and asset classes while maintaining simplicity by buying 5 to 10 ETFs.

Is 12 ETFs too many?

Generally speaking, fewer than 10 ETFs are likely enough to diversify your portfolio, but this will vary depending on your financial goals, ranging from retirement savings to income generation.

Is it wise to invest in VOO?

Summary. Investing in the S&P 500 index fund, such as VOO, is a winning long-term strategy. Historical data shows that the market has consistently gone higher despite obstacles and downturns.

Why doesn t Warren Buffett invest in real estate?

Buying and managing real estate is more of a business than it is an investment, and Buffett knows that his time is better spent choosing companies to invest in than it is running a real estate business.

Who owns the most shares of VOO?

Largest shareholders include Raymond James & Associates, Vanguard Group Inc, Bank Of America Corp /de/, Morgan Stanley, Goldman Sachs Group Inc, Envestnet Asset Management Inc, Jpmorgan Chase & Co, Cerity Partners LLC, Acorns Advisers, LLC, and Wells Fargo & Company/mn .

What is Warren Buffett's golden rule?

Like most investing styles that work, Warren Buffett's approach is quite dull. Buy good companies and look for value. It's boring in the short run, but lucrative in the long run. One way he looks for value is through his golden rule. In his own words: “Never lose money”.

What is the 80 20 rule Buffett?

— Warren Buffet's three-step prioritization strategy involves writing down 25 goals, selecting the top five, and focusing solely on those. What is the 80/20 rule? — The 80/20 rule states that 80% of desired results come from 20% of efforts, emphasizing the importance of working smart rather than just working hard.

What is Warren Buffett's 5 25 rule?

The rule's origin is reported as advice given by Buffet to his personal pilot, Mike Flint. Flint asked Buffet for career advice, leading to Buffet thinking of the 5/25 rule. Buffet asked Flint to list his top 25 career goals, pick the top five, and avoid the rest until the top five are achieved.

What are the best two ETFs?

Two funds that have outperformed the S&P 500 and more than doubled in value in the past five years are the Invesco QQQ Trust (NASDAQ: QQQ) and the Vanguard Growth ETF (NYSEMKT: VUG). Here's a look at why these funds have done so well, and whether you should consider adding them to your portfolio.

What is the best ETF for 2023?

The Bottom Line. Many funds and ETFs have exposure to giants in the tech sector. The top ETF of 2023 is iShares Expanded Tech Software Sector ETF (IGV), with a YTD return of 355.22%.

What is the 70 30 ETF strategy?

This investment strategy seeks total return through exposure to a diversified portfolio of primarily equity, and to a lesser extent, fixed income asset classes with a target allocation of 70% equities and 30% fixed income. Target allocations can vary +/-5%.

What stock is Warren Buffett buying?

Should You Buy the Oil Stock, Too? Warren Buffett's company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), recently revealed its latest stock transactions. One of its more notable purchases was shares of oil giant Chevron (NYSE: CVX).

What are Warren Buffett's favorite stocks?

What does Warren Buffett invest in now?

Top Berkshire Stock Holdings

In Q3 of 2023, Buffett's Berkshire held steady on its two largest stock holdings: Apple (AAPL) and Bank of America (BAC). Apple stock is the No. 1 holding in Berkshire's Dow stocks-heavy portfolio by market value. It is the No. 2 holding by number of shares, behind Bank of America.

Does Warren Buffett own any ETF?

How? Berkshire's fully owned subsidiary, New England Asset Management (NEAM), has its own portfolio. NEAM doesn't just have positions in stocks, though. Roughly 25% of Buffett's secret portfolio is invested in these three exchange-traded funds (ETFs).