For some investors, the phrase "stock market millionaire" conjures glamorous images of fast-paced, adrenaline-fueled trading. But the truth is typically more mundane. In most cases, stock market riches arise from boring decisions made on a regular basis over long periods of time.

Warren Buffett has often recommended a low-cost S&P 500 index fund as the most sensible option for the great majority of investors, noting that "by periodically investing in an index fund, the know-nothing investor can actually outperform most investment professionals."

To prove his point, Buffett once wagered $500,000 that a passively managed S&P 500 index fund could outperform a group of actively managed hedge funds over a 10-year time period. Protégé Partners accepted that challenge. The firm selected five hedge funds and tasked more than 200 fund managers with picking stocks.

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Source Fool.com