What would a $5,000 investment in VOO since 2014 be worth?

It would have grown to about $20,465, representing a compound annual return of over 10%.

Why did Buffett recommend an index fund?

He believes most investors cannot beat the market over the long term, and low-cost index funds offer good returns with lower risk.

Vanguard ETF Warren Buffett Endorsed Turns $5,000 Into $20,465

In 2014, Warren Buffett endorsed the Vanguard S&P 500 ETF as a long-term investment. A $5,000 investment at that time would have grown to approximately $20,465 today, reflecting a compound annual return of over 10%.

July 12, 2026

2 min read

Source: Motley Fool

Key Numbers

initial investment

$5,000

final value

$20,465

endorsement year

2014

In 2014, Warren Buffett, CEO of Berkshire Hathaway (BRK-B), recommended the Vanguard S&P 500 ETF (VOO) as an ideal investment for the average investor. This advice has proven sound over the long term.

Details

According to an analysis by Motley Fool, if an investor had placed $5,000 in VOO in 2014, it would be worth about $20,465 today. This represents a compound annual return of over 10%, outperforming most actively managed funds.

Context

Buffett is known for his consistent advocacy of low-cost index funds, such as VOO, rather than trying to pick individual stocks. In his 2013 annual letter, he recommended that most investors put their money into a low-cost S&P 500 index fund.

What This Means for Investors

This example highlights the power of passive, long-term investing. Instead of chasing high returns or trying to time the market, investors can achieve solid returns by staying invested in a diversified index fund. However, each investor should assess their own goals and risk tolerance before making any investment decision.

Frequently Asked Questions

It is an index fund that tracks the performance of the S&P 500, known for low fees and broad diversification.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.