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Buffett's Simple Tip to Help More Americans Start Investing
16 Nov
Summary
- Over one-third of Americans do not own stocks
- Top reasons: lack of money, knowledge, and fear of losses
- Buffett recommends investing in low-cost S&P 500 index funds
As of November 16th, 2025, more than one-third of Americans remain on the sidelines when it comes to investing in the stock market. A recent BlackRock survey has revealed the key reasons behind this hesitation.
The most common explanations cited by non-investors include not having enough money, feeling uninformed about investing, and being afraid of potential losses. However, investing legend Warren Buffett has long advocated a simple solution to address each of these concerns: investing in low-cost S&P 500 index funds.
Buffett has repeatedly emphasized the merits of this approach in his annual letters to Berkshire Hathaway shareholders. He believes that for most people, a passive index fund that tracks the performance of the 500 largest U.S. stocks is the best way to build long-term wealth. This strategy requires minimal upfront capital, no deep investing knowledge, and has historically recovered from market downturns.
