Warren Buffett has long advocated low-cost S&P 500 index funds for nonprofessional investors. Instead of trying to identify individual winners or time the market, this approach offers exposure to hundreds of large U.S. companies while limiting costs that could otherwise reduce long-term compounded returns.

A financial advisor can help you decide whether an index-based investment strategy aligns with your goals, risk tolerance and time horizon.

Why Warren Buffett Recommends S&P 500 Index Funds

Buffett’s approach is based partly on the idea that most nonprofessional investors do not need to predict which individual companies will outperform. In Berkshire Hathaway’s 2013 shareholder letter, Buffett wrote that the typical investor does not…