‘The best thing to do’
Buffett’s message is clear — long-term success in investing doesn’t require constant buying and selling. Instead, he advocates owning a “cross section of America.”
This philosophy stems from his unwavering confidence in the U.S. economy.
“American business — and consequently a basket of stocks — is virtually certain to be worth far more in the years ahead,” Buffett wrote in his 2016 letter to shareholders.
Berkshire’s own investment strategy reflects this belief. Its $295-billion equity portfolio is heavily weighted towards American companies across diverse industries, reinforcing Buffett’s faith in the nation’s long-term economic strength.
For those unsure about which American businesses to invest in, Buffett offers a straightforward solution: “In my view, for most people, the best thing to do is own the S&P 500 index fund,” he famously stated.
This simple approach gives investors exposure to 500 of America’s largest companies across various industries, providing diversified exposure without the need for constant monitoring or active trading.
Buffett’s commitment to this strategy is evident in his estate planning: he has directed that 90% of his wife’s inheritance be invested in “a very low-cost S&P 500 index fund” after his passing.
The beauty of this approach is its accessibility — anyone, regardless of wealth, can take advantage of it. Even small amounts can grow over time with tools like Acorns, a popular app that automatically invests your spare change.
Signing up for Acorns takes just minutes: link your cards, and Acorns will round up each purchase to the nearest dollar, investing the difference — your spare change — into a diversified portfolio. With Acorns, you can invest in an S&P 500 ETF with as little as $5 — and, if you sign up today, Acorns will add a $20 bonus to help you begin your investment journey.
Invest in real estate without the headache of being a landlord
Imagine owning a portfolio of thousands of well-managed single family rentals or a collection of cutting-edge industrial warehouses. You can now gain access to a $1B portfolio of income-producing real estate assets designed to deliver long-term growth from the comforts of your couch.
The best part? You don’t have to be a millionaire and can start investing in minutes.
Learn MoreBuffett likes productive assets
Buffett’s point about how “you can’t resell it tomorrow” when investing in farmland or apartment buildings is also worth highlighting.
Unlike stocks, which can be traded instantly, real assets come with higher transaction costs — but that’s not necessarily a drawback. Investors typically aren’t looking for quick flips; they’re in it for the long-term income these assets generate.
With farmland, you can earn money through crop sales or leasing fees. With rental properties, you can collect monthly rental income — both providing a steady cash flow while the asset itself appreciates over time.
Buffett has personal experience with both. In 1986, he bought a 400-acre farm near Omaha, and in 1993, he acquired a New York retail property next to NYU.
His verdict?
“The two investments will be solid and satisfactory holdings for my lifetime and, subsequently, for my children and grandchildren,” he wrote in his 2013 letter to Berkshire shareholders. He also predicted that the income from the two investments “will probably increase in the decades to come.”
Today, you don’t need to buy a whole farm or an entire building to invest in these asset classes.
For example, Homeshares allows accredited investors to gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning, or managing property.
The fund focuses on homes with substantial equity, utilizing Home Equity Agreements (HEAs) to help homeowners access liquidity without incurring debt or additional interest payments. This approach provides an effective, hands-off way to invest in high-quality residential properties, along with the added advantage of diversification across various regional markets – all with a minimum investment of $25,000.
With risk-adjusted internal returns ranging from 12% to 18%, the U.S. Home Equity Fund offers accredited investors a low-maintenance alternative to traditional property ownership.
Another option is First National Realty Partners (FNRP), which targets necessity-based commercial real estate.
The platform lets accredited investors own a share of necessity-based properties leased by national brands like Whole Foods, CVS, Kroger and Walmart. Investors can enjoy the potential to collect stable, grocery store-anchored income every quarter.
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