When Warren Buffett Says to Buy an S&P 500 Index Fund, Is He Advocating Putting 20% of Your Investment Portfolio in Nvidia, Microsoft, and Apple?

For decades, investors have closely followed Warren Buffett's market commentary, shareholder letters, and discussions at Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) annual shareholder meetings. These kernels of wisdom help filter out market noise and serve as a reminder to focus on fundamentals.Despite an identity built around buying businesses and picking winning stocks, Buffett has long advocated that investors who aren't interested in closely following markets may want to consider an S&P 500 (SNPINDEX: ^GSPC) index fund as a tool for compounding wealth.With a staggering 19.9% of the total market cap of the S&P 500 allocated to just three stocks -- Nvidia (NASDAQ: NVDA), Microsoft (NASDAQ: MSFT), and Apple (NASDAQ: AAPL) -- investors may be wondering if Buffett is giving the green light to buy these top growth stocks around all-time highs, or if there's a deeper meaning to his S&P 500 index fund investment thesis.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool