Warren Buffett is one of the greatest investors of all time, but those looking to follow the Oracle of Omaha's advice may be surprised to find he doesn't recommend that everyone pick individual stocks to invest in.
Instead, Buffett has indicated most investors would do better putting their money into an index fund rather than buying shares of individual companies. And he's actually gotten even more specific, recommending an S&P 500 fund. In a 2013 letter to Berkshire Hathaway shareholders, he even made clear he'd be putting this advice into action: He instructed that 90% of his wife's inheritance should be put into an S&P fund while the rest should be used to buy bonds.
If you're not interested in picking individual stocks and want to take a simpler approach to building wealth, you may be considering following this advice. But before you do, consider whether investing most of your money in the S&P 500 could leave your portfolio unbalanced.