Warren Buffett generally advises ordinary investors to buy an ultra-low-cost S&P 500 index fund, invest regularly each month, and hold for years or decades. In a 2013 letter to Berkshire Hathaway shareholders, he suggested his wife's trust put 90% into a very low-cost S&P 500 index fund (he suggested Vanguard's) and 10% into short-term government bonds. The article illustrates that investing $200 a month at an assumed 10% annual return would grow to about $152,000 in 20 years, $452,000 in 30 years, and $1.26 million in 40 years. Raising the monthly investment to $300, or starting with $1,000, could lift the 20-year balance to about $235,000.
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