Warren Buffett has long recommended investing in index funds.

For everyday investors, owning low-cost, passive funds provides access to a broad swath of the market, which helps mitigate the risk that a slide in one or even a few stocks torpedoes your portfolio’s performance. Plus, you’ll likely come out ahead of a lot of professional investors over the long run, the Berkshire Hathaway chairman says.

“In my view, for most people, the best thing to do is to own the S&P 500 index fund,” he said at the 2021 annual meeting of Berkshire Hathaway shareholders.

Indeed, over the 15 years that ended June 30, just 12% of actively managed funds that track large-company U.S. stocks outperformed the S&P 500, according to S&P Global.

Jim Cramer agrees…