Warren Buffett is known for his ability to pick a great stock -- and win through that investment over time. As chairman of Berkshire Hathaway, he's helped deliver a compounded annual gain of nearly 20% over 57 years, surpassing the S 500's (SNPINDEX: ^GSPC) compounded increase of about 10%. So, if you want to follow in the billionaire investor's footsteps, you may think the only option is to perfect your stock-picking skills.

But you actually have another much easier option that's Buffett-endorsed. The Oracle of Omaha even follows this bit of advice himself. I'm talking about investing in funds that track the S 500 Index. Berkshire Hathaway owns two of them, the SPDR S 500 ETF Trust (NYSEMKT: SPY) and the Vanguard S 500 ETF (NYSEMKT: VOO). A regular investment in one of these funds over time could significantly build your wealth, according to Buffett. Let's take a closer look at this top investor's advice and how to apply it.

Though Buffett has generated most of his wealth through selecting individual stocks, he's acknowledged this is often challenging. And in the 2013 Berkshire Hathaway letter to shareholders, Buffett suggested a way around this problem.

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Source Fool.com