A 2013 Berkshire Hathaway letter created a myth that Warren Buffett loves VOO. The reality is different. He named a specific Vanguard S&P 500 mutual fund for his wife’s inheritance, not the popular ETF. This article names the ticker, explains fees, and projects what $300 per month could become in 20 years.
💡 Frequently Asked Questions (FAQ)
- Q: What Vanguard fund did Warren Buffett recommend for his wife’s inheritance?
- A: In his 2013 Berkshire Hathaway letter, Buffett named the Vanguard 500 Index Fund Investor Shares, ticker VFIAX, not the ETF VOO.
- Q: Why is VOO not the fund Buffett named?
- A: VOO is an ETF. Buffett specifically recommended the mutual fund version VFIAX for simplicity and low cost for his wife.
- Q: What is the expense ratio of Buffett’s recommended Vanguard fund?
- A: VFIAX has an ultra-low expense ratio around 0.04%, making it one of the cheapest S&P 500 trackers available.
- Q: What could $300 per month grow to in 20 years in this fund?
- A: Based on historical S&P 500 average returns, $300 monthly invested for 20 years in VFIAX could grow to approximately $180,000 to $250,000 depending on market performance.