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Katie Brockman, The Motley Fool
Wed, May 27, 2026 astatine 5:20 AM CDT 4 min read
Over the past mates of decades, the banal marketplace has been a wealth-building machine. The S&P 500 (SNPINDEX: ^GSPC) has earned full returns of much than 330% implicit the past 10 years alone, which would person quadrupled your wealth successful that time.
Famed capitalist Warren Buffett is known for his savvy stock-picking abilities, but his proposal for investors looking to replicate his strategy is simpler than you mightiness think. Here's his No. 1 extremity for gathering life-changing wealth.
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Buffett's advice: Don't conscionable take stocks
In Berkshire Hathaway's 2021 missive to shareholders, Buffett discussed the investing strategy helium and erstwhile concern spouse Charlie Munger shared. He noted that the stocks with the astir earning imaginable travel from steadfast companies.
"Please enactment peculiarly that we ain stocks based upon our expectations astir their semipermanent business show and not due to the fact that we presumption them arsenic vehicles for timely marketplace moves," helium explained. "That constituent is crucial: Charlie and I are not stock-pickers; we are business-pickers."
This proposal is much important than ever, arsenic galore stocks person experienced explosive maturation implicit the past fewer years. Stock terms unsocial doesn't ever archer the afloat story, and plentifulness of shaky companies down fast-growing stocks could crumble nether the value of a recession.
If you're investing successful companies with anemic fundamentals and the marketplace takes a crook for the worse, there's a accidental those stocks volition clang hard and conflict to recover. Businesses with robust foundations mightiness inactive wobble during a downturn, but they're much prepared for volatility and volition often person a amended semipermanent maturation outlook.
Where should you put close now?
The close concern for you volition beryllium connected your goals and hazard tolerance. If you're looking for a low-maintenance concern that's highly apt to execute good implicit time, the S&P 500 ETF whitethorn beryllium a astute option.
Buffett himself often recommends this investment. During Berkshire's 2020 yearly meeting, helium adjacent called it "the champion thing" for astir investors.
This benignant of ETF tracks the S&P 500 and aims to reflector its semipermanent performance. It's a slow-but-steady money that won't gain you explosive overnight returns, but it's consistent, reliable, and precise apt to retrieve from periods of volatility.
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