Warren Buffett VOO Portfolio Review

Warren Buffett's portfolio is a closely guarded secret, but we can get a glimpse of it through his investment in the Vanguard S&P 500 ETF, also known as VOO.

VOO is a low-cost index fund that tracks the S&P 500 index, which means it holds a small piece of every company in the S&P 500. This gives Buffett exposure to a broad range of industries and companies.

Buffett's investment in VOO is estimated to be around 10% of the total fund, making him one of the largest individual shareholders of VOO.

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Investing in the S&P 500 is a straightforward way to gain exposure to hundreds of influential stocks, including Apple, Nvidia, and Tesla.

The Vanguard S&P 500 ETF (VOO) is a popular choice, tracking the S&P 500 index and allowing investors to spread capital across many of the most profitable U.S. companies.

The ETF has an expense ratio of 0.03%, significantly lower than the average U.S. exchange-traded fund and mutual fund, which charged 0.34% last year.

Investing $400 per month in the Vanguard S&P 500 ETF could turn into $77,900 in one decade, $287,700 in two decades, and $851,800 in three decades, assuming a 10.4% annual return.

You can contribute $400 per month to the Vanguard S&P 500 ETF by either buying fractional shares or adding $400 to your account each month and making purchases as you accumulate sufficient cash.

The 10 largest positions in the Vanguard ETF are Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta Platforms, Berkshire Hathaway, Broadcom, Tesla, and Eli Lilly, making up a significant portion of the fund's holdings.

Investing in the S&P 500 index fund can be a cheap and easy way to create substantial wealth over the long term, as Warren Buffett has recommended for years.

Here are the top 10 holdings in the Vanguard S&P 500 ETF, listed by weight:

Warren Buffett's decision to sell VOO might have you wondering if you should follow suit. Despite the sales, SPY and VOO are still two of the biggest ETFs for a reason: They provide investors with a low-cost way to get exposure to US large-cap stocks.

Berkshire Hathaway's sales of VOO are not a reflection of any fundamental changes at the ETF. Both SPY and VOO earn high ratings from Morningstar, with VOO earning a higher rating than SPY due to its lower fees.

It's worth considering whether your portfolio is overly exposed to US large company stocks. If so, adding some diversification through a total market ETF or an ETF that invests in international stocks could be a good idea.

You shouldn't sell these two ETFs just yet. SPY and VOO are valuable anchors in investor portfolios, providing a low-cost way to get exposure to US large-cap stocks.

Their sales aren't a reflection of any fundamental changes at these ETFs, as both earn high ratings from Morningstar. SPY earns a high rating, but VOO does slightly better due to its lower fees.

Berkshire Hathaway's exit from these ETFs might be a reminder to check in on your own portfolio allocations. Are you overly exposed to US large company stocks?

Consider adding some diversification through a total market ETF that includes smaller companies than the S&P 500 does, or maybe an ETF that invests in international stocks to your portfolio.

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Warren Buffet is selling the S&P 500, but it's not a statement about the overall economy. His portfolio still holds major investments in top American companies like Amazon, Kraft Heinz, Coca-Cola, and Apple.

The S&P 500's valuation has been getting lofty, with a forward 12-month P/E ratio of 21.2 in late February 2025, higher than both the five-year average P/E ratio of 19.8 and the 10-year average of 18.3.

This could indicate that share prices are rising without the earnings to back them up. Buffet's increase in cash holdings is another signal that he believes a correction is due.

S&P 500 index funds accounted for less than 0.02% of Berkshire's portfolio in the third quarter of 2024, so fund sales can hardly be considered a statement about the overall economy.

Buffet's portfolio still holds onto major investments in top American companies, so it's not a sell signal for the S&P 500.

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When it comes to investing, Warren Buffett's approach to portfolio allocation is a key takeaway from his VOO strategy. He advocates for a low-cost index fund, like the Vanguard S&P 500 ETF, which tracks the S&P 500 index.

Warren Buffett's investment philosophy emphasizes diversification and long-term thinking. He recommends allocating 90% to 100% of one's portfolio to low-cost index funds.

Investing in a low-cost index fund allows you to own a small piece of many companies, spreading your risk and potentially increasing returns. This approach has been successful for Buffett and his investors.

The S&P 500 index includes 505 of the largest and most stable companies in the US, providing a broad representation of the market.

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