Warren Buffett said 90% of his wife's inheritance will go into a single investment. Here's why and how you can do it too

Moneywise

Tue, May 19, 2026 at 11:05 AM EDT 5 min read

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Legendary investor Warren Buffett has generated substantial returns for the shareholders of his company, Berkshire Hathaway. From 1964 to 2023, Berkshire delivered an overall gain of 4,384,748% (1).

Given that astonishing track record, one might assume that Buffett would want this successful trajectory to continue through his estate after his passing. However, the Oracle of Omaha has a different plan in mind.

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In his 2013 letter to Berkshire shareholders, Buffett shed light on the directives he has included in his will.

“One bequest provides that cash will be delivered to a trustee for my wife’s benefit,” he wrote (2). “My advice to the trustee could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund.” And now, over 10 years later, the S&P 500 is continuing to weather storm after storm — including the war in Iran.

While Buffett’s strategy is straightforward and doesn't require constant monitoring or active trading, Buffett expressed a significant amount of confidence in it.

Here are a few ways you can take Buffett’s advice and apply it to your own portfolio.

Don’t pick stocks, do this instead

Buffett’s preference for recommending index funds stems from his belief that stock picking is not an optimal strategy for average investors.

At the 2021 shareholders meeting, he stated frankly, “I do not think the average person can pick stocks (3).”

This is where index funds come into play. They can be a passive investment strategy accessible to everyone — even those without Buffett’s wealth.

In fact, even your digital nickels and dimes will suffice. There’s a popular app called Acorns that invests your spare change for you automatically.

All you need to do is sign up and link your cards, which just takes a couple of minutes. Then it’ll round up your recent purchases to the nearest dollar and invest the difference — your spare change — in a diversified portfolio.

This effortless strategy offers a practical and low-barrier entry into the world of investing.