Warren Buffett’s S&P 500 bet paid off. Some experts say it may be time to diversify
Warren Buffett, Berkshire Hathaway CEO and chairman.
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In 2007, Warren Buffett made a $1 million bet that he could outperform hedge fund managers over the course of a decade by investing in an S&P 500 index fund.
Some individual investors are making similar bets on the S&P 500 with their money, whether it be through exchange-traded funds or mutual funds.
True to its name, the S&P 500 index includes 500 large U.S. companies. The index is market cap-weighted, with each listed company’s weighting based on the total value of all its outstanding shares. The index is rebalanced quarterly.
The three biggest…
