Warren Buffett Sold His Only Vanguard Index Fund, but a Wall Street Analyst Says It May Soar 160%
Few investors have been more successful than Warren Buffett. Over the past six decades, he turned Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) into one of the largest conglomerates in the world through a series of savvy acquisitions and prudent stock purchases. Consequently, since he took control of Berkshire in 1965, its share price has increased at 20% annually.Buffett oversees the vast majority of Berkshire's stock portfolio, and he recently made an interesting capital allocation decision. He -- or fellow investment managers Ted Weschler and Todd Combs -- sold the company's entire stake in the Vanguard S&P 500 ETF (NYSEMKT: VOO). In fact, Berkshire sold the only two index funds in its portfolio, both of which tracked the S&P 500 (SNPINDEX: ^GSPC).That decision was somewhat surprising, because Buffett has often argued that S&P 500 index funds are the best way for most nonprofessional investors to get exposure to U.S. stocks. In addition, equity analyst Tom Lee at Fundstrat Global Advisors thinks the S&P 500 will reach 15,000 by 2030. That implies 160% upside from its current level of 5,768.Continue reading
Few investors have been more successful than Warren Buffett. Over the past six decades, he turned Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) into one of the largest conglomerates in the world through a series of savvy acquisitions and prudent stock purchases. Consequently, since he took control of Berkshire in 1965, its share price has increased at 20% annually.
Buffett oversees the vast majority of Berkshire's stock portfolio, and he recently made an interesting capital allocation decision. He -- or fellow investment managers Ted Weschler and Todd Combs -- sold the company's entire stake in the Vanguard S&P 500 ETF (NYSEMKT: VOO). In fact, Berkshire sold the only two index funds in its portfolio, both of which tracked the S&P 500 (SNPINDEX: ^GSPC).
That decision was somewhat surprising, because Buffett has often argued that S&P 500 index funds are the best way for most nonprofessional investors to get exposure to U.S. stocks. In addition, equity analyst Tom Lee at Fundstrat Global Advisors thinks the S&P 500 will reach 15,000 by 2030. That implies 160% upside from its current level of 5,768.
