{
  "id": 16714893,
  "title": "Warren Buffett Says Buy an S&P 500 Index Fund. Here's What $500 a Month Is Worth in 20 Years at 3 Different Return Rates.",
  "url": "https://urgent.news/2026/10/27/warren-buffett-says-buy-an-s-p-500-index-fund-heres-what-500-a-month",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-27T06:00:00.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/investing/2026/10/27/warren-buffett-sp-500-etf-500-month-20-years/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "Warren Buffett, the renowned investor, advises that the best way to build wealth is by investing in an S&P 500 index fund, like the Vanguard S&P 500 ETF. He suggests this over picking individual stocks. This advice is backed by a comparison of three potential outcomes over a 20-year period with a monthly investment of $500.\n\nIn the first scenario, if the market's return is significantly below its long-term average, investors would see a smaller return. The S&P 500 has averaged around 10% annualized total return historically. Investing at a 5% rate would result in $205,000 over 20 years, which might not seem appealing when compared to the security of a 10-year U.S. Treasury note offering a 5% risk-free yield.\n\nThe second scenario assumes the S&P 500 matches its historical performance. This is likely, given the economy's growth and the Federal Reserve's focus on controlling inflation. With a 10% annualized return, $500 invested monthly would grow to $364,000 over 20 years. This is seen as the most probable outcome, as it assumes the market returns to the mean.\n\nThe third and most optimistic scenario expects the S&P 500 to continue its above-average growth. This scenario disregards valuation concerns and assumes that unsustainable growth can continue. With a 15% annualized return, $500 invested monthly could accumulate to $669,000 over 20 years. Despite the valuation being historically high, this scenario presents a compelling case for the long-term potential of the S&P 500 index fund.",
  "summary": "The Oracle of Omaha doesn't think most investors should pick individual stocks.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}