Tags: Investors | Bogle | Buffett | Vanguard

Buffett's Estate Planning Drives Investors to Vanguard Funds

By    |   Thursday, 21 August 2014 07:43 PM

Investors are running to Vanguard Group, attracted by its low-fee index funds and inspired by an endorsement from Warren Buffett, legendary CEO of Berkshire Hathaway.

The investor stampede has boosted Vanguard's assets under management to a record of almost $3 trillion, The Wall Street Journal reports.

Buffett's recommendation came in his annual letter to Berkshire shareholders in March. He wrote that most investors would benefit from following the instructions in his will.

Editor’s Note: 5 Shocking Reasons the Dow Will Hit 60,000

Those instructions are to "put 10 percent of the cash in short-term government bonds and 90 percent in a very low-cost S&P 500 index fund. (I suggest Vanguard's.)," Buffett said.

In the five months after that, investors did so to the tune of $5.5 billion, three times the inflow of the same period in 2013, The Journal reports.

Vanguard founder John Bogle wrote in an e-mail to Buffett that financial advisers now call Bogle only "the second best salesman at Vanguard," according to the paper.

Morningstar analyst Michael Rawson thinks highly of the Vanguard S&P 500 ETF.

"Vanguard S&P 500 ETF is a solid core equity holding, as it is broadly diversified across sectors and individual stocks," he writes on Morningstar.com. "It has the lowest expense ratio of any exchange-traded fund tracking the S&P 500 index."

The fund traded at $182.99 Thursday afternoon, 1.9 percent above Rawson's fair value estimate of $179.61.

Editor’s Note: 5 Shocking Reasons the Dow Will Hit 60,000

Related Articles:

© 2019 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
Finance
Investors are running to Vanguard Group, attracted by its low-fee index funds and inspired by an endorsement from Warren Buffett, legendary CEO of Berkshire Hathaway.
Investors, Bogle, Buffett, Vanguard
268
2014-43-21
Thursday, 21 August 2014 07:43 PM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved