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Legendary investor Warren Buffett has generated substantial returns for the shareholders of his company, Berkshire Hathaway. From 1964 to 2025, Berkshire delivered an overall gain of 6,099,294% (1). That’s over six million percent.
Given that astonishing track record, you might assume that Buffett would want this successful trajectory to continue through his estate after his passing. However, the Oracle of Omaha has a different plan in mind.
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In his 2013 letter to Berkshire shareholders, Buffett shed light on the directives he has included in his will.
“One bequest provides that cash will be delivered to a trustee for my wife’s benefit,” he wrote (2). “My advice to the trustee could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund.”
And now, over 10 years later, the S&P 500 is continuing to weather storm after storm — including the war in Iran.
While Buffett’s strategy is straightforward and doesn’t require constant monitoring or active trading, Buffett expressed a significant amount of confidence in it.
Here are a few ways you can take Buffett’s advice and apply it to your own portfolio.
Don’t pick stocks, do this instead
Buffett’s preference for recommending index funds stems from his belief that stock picking is not an optimal strategy for average investors.
At the 2021 annual shareholders meeting, he stated frankly, “I do not think the average person can pick stocks (3).”
This is where index funds come into play. They can be used as a more passive investment strategy that gives investors exposure to many companies across various industries. Although this strategy spreads the risk, the rewards can still be very rich.
In fact, the S&P 500, Buffett’s preferred index for low-cost investing, surged 16.39% in 2025, or 17.88% with dividends (4).
The beauty of ETF investing is also its accessibility — anyone, regardless of wealth, can take advantage of it. Even small amounts can grow over time with tools like Acorns, an app that automatically invests your spare change.