Had You Parked $5,000 in This Vanguard ETF When Warren Buffett Recommended It in 2014, Here's How Much You'd Have Today
2026-07-17 10:10
•Anthony Di Pizio •The Motley Fool
•••• ••• Axe Capital view
Buffett’s S&P 500 Bet: What It Means For South African Investors
Warren Buffett’s low-cost Vanguard S&P 500 ETF recommendation has delivered around 14% yearly returns over the past decade.
Warren Buffett’s advice to back a low-cost S&P 500 fund like Vanguard’s VOO since 2014 has proven solid, yielding roughly 14% annual gains. While South African investors haven’t had direct access to VOO for long, the message is clear: keeping costs low and riding broad market growth beats trying to pick winners. The rand’s behavior affects this story—USD/ZAR volatility eats into offshore returns but also offers chances to add at better levels. Big local banks like Standard Bank or FirstRand don’t offer the same pure growth but are worth watching for yield and cyclicals if the rand weakens further. Tech exposure through Naspers or Prosus gives a local stake in global growth, but they’re more volatile and less diversified than an S&P 500 ETF. If you want offshore exposure, sticking to a low-fee USD fund makes sense, but be ready for times when the rand rallies and cuts returns. This isn’t a sure bet—rising US inflation or a sharper rand could reduce these returns. this is just my opinion and not financial advice
I’d buy a low-cost S&P 500 ETF via a local platform while hedging currency risk selectively. Locally, trim growth stocks like Naspers if forex risks spike, and buy dividend-heavy banks on weaker rand moves.
- VOO
- USD/ZAR
- Naspers
- Standard Bank
- USD strength reducing rand returns
- US inflation forcing Fed hikes slowing growth
6/10
An investor who placed $5,000 in the Vanguard S&P 500 ETF (VOO) when Warren Buffett recommended it in 2014 would have approximately $24,344 today, reflecting a 14.1% compound annual return. Buffett advocates for low-cost index funds as a reliable investment strategy for average investors, citing the ETF's minimal 0.03% expense ratio. The article suggests similar returns are reasonable going forward, driven by growth in AI, robotics, and other emerging technologies.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Anthony Di Pizio
Categories: Technology, AI, Semiconductors, Equities
Tickers: VOO, BRK.A, BRK.B
Sentiment: Positive - The article highlights the ETF's strong historical performance (14.1% annual return since 2014), extremely low fees (0.03%), and endorsement by Warren Buffett as a reliable investment vehicle for long-term wealth building. Presented as a successful investment under Buffett's leadership with 19.7% compound annual returns over 60 years, demonstrating the credibility of his investment philosophy and recommendations.
Keywords: Warren Buffett, index funds, S&P 500, long-term investing, ETF, low-cost investing, artificial intelligence, diversification
Insights:
- VOO: Positive: The article highlights the ETF's strong historical performance (14.1% annual return since 2014), extremely low fees (0.03%), and endorsement by Warren Buffett as a reliable investment vehicle for long-term wealth building.
- BRK.A: Positive: Presented as a successful investment under Buffett's leadership with 19.7% compound annual returns over 60 years, demonstrating the credibility of his investment philosophy and recommendations.
- BRK.B: Positive: Presented as a successful investment under Buffett's leadership with 19.7% compound annual returns over 60 years, demonstrating the credibility of his investment philosophy and recommendations.