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Warren Buffett is well known for his investing prowess — the Oracle of Omaha has made billions due to his smart stock purchases. With his reputation as one of the world’s best investors, it’s not surprising many people watch his purchases and recommendations carefully to inform their own stock-buying habits.
Of course, even Buffett isn’t perfect, so for most of his recommendations, there’s no guarantee you’ll make money. However, Buffett did offer one investment pick that’s virtually a sure thing — and if you follow his advice and invest your retirement savings in it, you’re all but guaranteed to earn a good return over time.
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As close to a sure thing as you can get
So what’s Buffett’s can’t-miss recommendation? It’s an S&P 500 index fund.
Index funds track the performance of a specific financial index — in this case, the Standard & Poor’s 500 Index. The S&P 500 is made up of the 500 largest, publicly traded companies in the U.S. stock market, weighted by market capitalization (the total dollar value of the company’s outstanding stock shares).
Because the index includes virtually all of the biggest U.S. companies, it’s widely viewed as a benchmark index for …
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