Warren Buffett Loves Index Funds, and Here's Why You Should, Too

Warren Buffett is one of the most well-known investors of our time, so it pays to heed his advice. And if there's one investment he's a big fan of, it's index funds.

To be fair, Buffett has made much of his personal fortune by handpicking successful stocks that have allowed him to beat the market. But he's specifically instructed the trustee in charge of his estate to invest the bulk of his money in S&P 500 index funds upon his passing. And the fact that Buffett has such faith in index funds means they're probably a good choice for you, too.

Index funds are passively managed funds that seek to track the performance of the market indexes they're associated with. An S&P 500 index fund, for example, will aim to match the performance of the S&P 500.

Source Fool.com