S&P 500 Sell-Off: Why Warren Buffett Is Still Right About Index Investing, Even After Selling His S&P 500 Funds

The S&P 500 index (SNPINDEX: ^GSPC) has followed the Nasdaq Composite (NASDAQINDEX: ^IXIC) into correction territory, with both having fallen 10% from their peaks. That's got Wall Street worried that the next stop could be a 20% decline, which would indicate a bear market.Warren Buffett's advice to buy an S&P 500 index fund is still a good idea, even though he sold the index funds Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) owned at the end of 2024. Here's why.The graph below charts the path of a $10,000 investment in the Vanguard 500 Index Fund Admiral Shares (NASDAQMUTFUND: VFIAX) from Aug. 31, 1978 until March 13, 2025. The S&P 500 index dipped into correction territory on March 13, so this chart includes the roughly 10% pullback that has Wall Street so worried about the future today. But look at the ending value of that original $10,000 investment. Assuming dividends were reinvested all along the way, this Vanguard 500 index fund would now be worth $1.8 million.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool