Tag: Warren Buffett

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The S&P500 is one of the most attractive index funds amongst many others. This index fund tracks the performance of the top 500 companies in the U.S. The S&P500 also earns on average a whopping 8%-10% yearly return. This makes it one of the most secure and rewarding index funds in investors portfolio’s.

If you’re curious as to which companies are pooled in this index fund I’ll have the entire list for you too.

As more of the public learns about investing and just how easy it is to purchase a stock, more long term assets will get discovered. While cryptocurrency has been extremely popular amongst younger people, at some point it’s time to sit down and start thinking about your long term financial success.

So, is the S&P500 all you need to retire a millionaire? Lets dive in.

Welcome to Franknez.com – the blog where you can digest content on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.

Lets get started!

I’m writing this article to further provide knowledge to my readers participating in crypto and short term trading. My mission is to help you succeed financially. And although I’m pro opportunity, I’m also pro on delayed gratification and long term investing.

To start this off, see what this multibillionaire thinks of the S&P500 index fund.

Warren Buffett approves

We all know Warren Buffett for being one of the most successful stock pickers of all time. If you follow him then you’re also aware of how much he loves index funds. Warren has even instructed the trustee of his estate to invest 90% of the money he leaves to his wife in the S&P500. This is a clear sign of what Warren Buffett’s conviction in this particular index fund.

The benefits of owning the S&P500 include low commission fees and a diversified pool consisting of the most successful companies in America.

So is the S&P500 enough? In reality, this depends on what how much is enough to you. If Warren Buffett’s conviction towards the S&P500 is strong then it must be right?

Investment calculator: $1 million dollars

If you were to invest only $400 per month with a return of 10% for 30 years, you’d retire a millionaire.

For most retirees this would provide a comfortable living, especially when armoring up with social security benefits.

You can use the calculator here to personalize your contributions and years to grow.

Does the S&P500 pay dividends?

Yes, the S&P500 has paid dividends ranging from 3%-5%. It has never dropped below 3% on average since it’s establishment. I personally hold the S&P500 through Vanguard, ticker symbol VOO. It’s been a great performing index fund long term and I plan on adding to my position yearly.

You may choose to purchase the S&P500 monthly or on a yearly basis. I usually contribute to my portfolio when the market is on discount.

Reinvesting my dividends has allowed me to purchase fractions of the index fund passively. This snowball effect will play a massive role to my portfolios growth long term.

The S&P500 was actually my very first investment in the stock market. Just recently a gentlemen in the AMC community made an eye opening statement. He said if you put $5 million dollars into the S&P500 it would yield you $500,000 in dividend income per year. And this is without contributing a single dollar!

It’s no wonder Warren Buffets instructions are to move 90% of his assets into this index fund. It truly is a wealth builder.

Why does the S&P500 keep going up?

The S&P500 will continue to go up simply because America is always growing. As long as America remains a capitalist country, this index fund is always going to trend upwards.

The S&P500’s performance is going to highly depend on the performance and well-being of our economy. Sure we might stumble across some hiccups but America is always pushing forward. The top 500 companies being tracked by the index fund are always growing. These companies are the best in the world and their primary goal is growth.

I don’t see a moment in time where the S&P500 yields poor performance. Everything we know to be America would have to be wiped out from the face of the planet. And I think we’re doing pretty well to say the least.

Like every stock in the market, there’s no ceiling to just how high the S&P500 can go. As long as there is inflation, and there will always be, this index fund is going to continuously go up forever.

The best time to plant a tree was yesterday. The second best time is today. This Chinese proverb makes so much sense in every aspect of a successful and abundant world. The sooner we start investing in our futures means the better off we will be when we are ready to reap the rewards.

Which companies are in the S&P500?

The S&P500 actually consists of 505 total stocks but 500 total companies. You can skip scroll past this chart but here’s the entire list:

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Apple Inc.

Microsoft Corporation

Amazon.com Inc.

Facebook Inc. Class A

Alphabet Inc. Class A

Alphabet Inc. Class C

Berkshire Hathaway Inc. Class B

JPMorgan Chase & Co.

Johnson & Johnson

Tesla Inc

UnitedHealth Group Incorporated

Visa Inc. Class A

NVIDIA Corporation

Home Depot Inc.

Procter & Gamble Company

Bank of America Corp

Mastercard Incorporated Class A

Walt Disney Company

PayPal Holdings Inc

Exxon Mobil Corporation

Comcast Corporation Class A

Verizon Communications Inc.

Adobe Inc.

Intel Corporation

Pfizer Inc.

Cisco Systems Inc.

Netflix Inc.

Coca-Cola Company

AT&T Inc.

Abbott Laboratories

AbbVie Inc.

salesforce.com inc.

Merck & Co. Inc.

PepsiCo Inc.

Chevron Corporation

Walmart Inc.

Wells Fargo & Company

Broadcom Inc.

Thermo Fisher Scientific Inc.

Accenture Plc Class A

McDonald’s Corporation

Medtronic Plc

NIKE Inc. Class B

Costco Wholesale Corporation

Texas Instruments Incorporated

Citigroup Inc.

Danaher Corporation

Eli Lilly and Company

Linde plc

United Parcel Service Inc. Class B

Honeywell International Inc.

Philip Morris International Inc.

Union Pacific Corporation

Qualcomm Inc

Bristol-Myers Squibb Company

Oracle Corporation

Amgen Inc.

NextEra Energy Inc.

Lowe’s Companies Inc.

Raytheon Technologies Corporation

Caterpillar Inc.

Starbucks Corporation

Morgan Stanley

International Business Machines Corporation

Goldman Sachs Group Inc.

Boeing Company

BlackRock Inc.

3M Company

CVS Health Corporation

Intuit Inc.

General Electric Company

Applied Materials Inc.

Deere & Company

American Tower Corporation

Target Corporation

Charles Schwab Corporation

American Express Company

Anthem Inc.

Intuitive Surgical Inc.

Charter Communications Inc. Class A

Lockheed Martin Corporation

Booking Holdings Inc.

Cigna Corporation

Advanced Micro Devices Inc.

Altria Group Inc

Fidelity National Information Services Inc.

ServiceNow Inc.

Micron Technology Inc.

S&P Global Inc.

Mondelez International Inc. Class A

Gilead Sciences Inc.

Lam Research Corporation

Prologis Inc.

Stryker Corporation

U.S. Bancorp

PNC Financial Services Group Inc.

Automatic Data Processing Inc.

Zoetis Inc. Class A

Truist Financial Corporation

TJX Companies Inc

T-Mobile US Inc.

Crown Castle International Corp

Duke Energy Corporation

CME Group Inc. Class A

ConocoPhillips

CSX Corporation

FedEx Corporation

Chubb Limited

Activision Blizzard Inc.

Capital One Financial Corporation

Colgate-Palmolive Company

Becton Dickinson and Company

General Motors Company

Norfolk Southern Corporation

Marsh & McLennan Companies Inc.

Sherwin-Williams Company

Estee Lauder Companies Inc. Class A

Southern Company

Fiserv Inc.

Illinois Tool Works Inc.

Air Products and Chemicals Inc.

Equinix Inc.

Intercontinental Exchange Inc.

Dominion Energy Inc

Autodesk Inc.

Freeport-McMoRan Inc.

Progressive Corporation

Newmont Corporation

Boston Scientific Corporation

Northrop Grumman Corporation

Global Payments Inc.

Humana Inc.

Aon Plc Class A

Eaton Corp. Plc

Edwards Lifesciences Corporation

Analog Devices Inc.

Illumina Inc.

Emerson Electric Co.

Vertex Pharmaceuticals Incorporated

Waste Management Inc.

NXP Semiconductors NV

HCA Healthcare Inc

Regeneron Pharmaceuticals Inc.

Ecolab Inc.

Moody’s Corporation

Dow Inc.

Dollar General Corporation

MetLife Inc.

Ford Motor Company

EOG Resources Inc.

KLA Corporation

Johnson Controls International plc

DuPont de Nemours Inc.

Roper Technologies Inc.

IDEXX Laboratories Inc.

Kimberly-Clark Corporation

Schlumberger NV

Ross Stores Inc.

IQVIA Holdings Inc

Exelon Corporation

L3Harris Technologies Inc

TE Connectivity Ltd.

American International Group Inc.

General Dynamics Corporation

Biogen Inc.

T. Rowe Price Group

American Electric Power Company Inc.

Trane Technologies plc

Prudential Financial Inc.

Twitter Inc.

Digital Realty Trust Inc.

Public Storage

PPG Industries Inc.

Baxter International Inc.

Sysco Corporation

Centene Corporation

Align Technology Inc.

Sempra Energy

Allstate Corporation

Bank of New York Mellon Corporation

Simon Property Group Inc.

Electronic Arts Inc.

HP Inc.

Agilent Technologies Inc.

Travelers Companies Inc.

Microchip Technology Incorporated

Constellation Brands Inc. Class A

Amphenol Corporation Class A

Parker-Hannifin Corporation

Walgreens Boots Alliance Inc

Marathon Petroleum Corporation

eBay Inc.

Alexion Pharmaceuticals Inc.

Cummins Inc.

General Mills Inc.

IHS Markit Ltd.

O’Reilly Automotive Inc.

Cognizant Technology Solutions Corporation Class A

Phillips 66

Xcel Energy Inc.

Archer-Daniels-Midland Company

Marriott International Inc. Class A

Aptiv PLC

MSCI Inc. Class A

Chipotle Mexican Grill Inc.

Synopsys Inc.

Kinder Morgan Inc Class P

Aflac Incorporated

Southwest Airlines Co.

Yum! Brands Inc.

Carrier Global Corp.

International Flavors & Fragrances Inc.

Discover Financial Services

Zimmer Biomet Holdings Inc.

Cadence Design Systems Inc.

Willis Towers Watson Public Limited Company

Motorola Solutions Inc.

Stanley Black & Decker Inc.

Monster Beverage Corporation

Hilton Worldwide Holdings Inc

Corteva Inc

Corning Inc

AutoZone Inc.

First Republic Bank

TransDigm Group Incorporated

DexCom Inc.

Paychex Inc.

PACCAR Inc

McKesson Corporation

Williams Companies Inc.

Otis Worldwide Corporation

Valero Energy Corporation

SBA Communications Corp. Class A

Public Service Enterprise Group Inc

Pioneer Natural Resources Company

Welltower Inc.

AMETEK Inc.

Nucor Corporation

D.R. Horton Inc.

Cintas Corporation

Rockwell Automation Inc.

WEC Energy Group Inc

Fastenal Company

Xilinx Inc.

Fifth Third Bancorp

State Street Corporation

Ameriprise Financial Inc.

Delta Air Lines Inc.

Mettler-Toledo International Inc.

SVB Financial Group

Eversource Energy

CBRE Group Inc. Class A

Equifax Inc.

LyondellBasell Industries NV

Kraft Heinz Company

ANSYS Inc.

ResMed Inc.

Verisk Analytics Inc

Ball Corporation

Fortinet Inc.

Arthur J. Gallagher & Co.

Weyerhaeuser Company

Kroger Co.

American Water Works Company Inc.

AvalonBay Communities Inc.

Skyworks Solutions Inc.

V.F. Corporation

DTE Energy Company

Kansas City Southern

Consolidated Edison Inc.

Best Buy Co. Inc.

Laboratory Corporation of America Holdings

Lennar Corporation Class A

Zebra Technologies Corporation Class A

Keysight Technologies Inc

Dollar Tree Inc.

Old Dominion Freight Line Inc.

Maxim Integrated Products Inc.

Hershey Company

Equity Residential

Copart Inc.

Synchrony Financial

International Paper Company

Realty Income Corporation

Vulcan Materials Company

Northern Trust Corporation

West Pharmaceutical Services Inc.

Cerner Corporation

CDW Corp.

Hartford Financial Services Group Inc.

ONEOK Inc.

Tyson Foods Inc. Class A

Fortive Corp.

ViacomCBS Inc. Class B

United Rentals Inc.

Expedia Group Inc.

Republic Services Inc.

Clorox Company

FLEETCOR Technologies Inc.

Martin Marietta Materials Inc.

Hess Corporation

PPL Corporation

McCormick & Company Incorporated

KeyCorp

Carnival Corporation

Alexandria Real Estate Equities Inc.

Edison International

Western Digital Corporation

Regions Financial Corporation

VeriSign Inc.

Church & Dwight Co. Inc.

Dover Corporation

Entergy Corporation

Occidental Petroleum Corporation

Tractor Supply Company

Ameren Corporation

Hewlett Packard Enterprise Co.

M&T Bank Corporation

Citizens Financial Group Inc.

Take-Two Interactive Software Inc.

Garmin Ltd.

Etsy Inc.

Xylem Inc.

Teradyne Inc.

FirstEnergy Corp.

Ventas Inc.

Expeditors International of Washington Inc.

Gartner Inc.

Caesars Entertainment Inc

W.W. Grainger Inc.

Halliburton Company

Seagate Technology Holdings PLC

Qorvo Inc.

Waters Corporation

Generac Holdings Inc.

Extra Space Storage Inc.

CarMax Inc.

Cooper Companies Inc.

Celanese Corporation

Trimble Inc.

Amcor PLC

Genuine Parts Company

Viatris Inc.

Teledyne Technologies Incorporated

Nasdaq Inc.

Essex Property Trust Inc.

Broadridge Financial Solutions Inc.

Las Vegas Sands Corp.

Akamai Technologies Inc.

Baker Hughes Company Class A

Royal Caribbean Group

Conagra Brands Inc.

Albemarle Corporation

Teleflex Incorporated

Darden Restaurants Inc.

CMS Energy Corporation

Ulta Beauty Inc

Cincinnati Financial Corporation

Avery Dennison Corporation

Healthpeak Properties Inc.

Mid-America Apartment Communities Inc.

Ingersoll Rand Inc.

United Airlines Holdings Inc.

Jacobs Engineering Group Inc.

Arista Networks Inc.

Omnicom Group Inc

AmerisourceBergen Corporation

Quest Diagnostics Incorporated

NetApp Inc.

Pool Corporation

Eastman Chemical Company

Duke Realty Corporation

MarketAxess Holdings Inc.

Kellogg Company

Domino’s Pizza Inc.

AES Corporation

Catalent Inc

Principal Financial Group Inc.

Enphase Energy Inc.

IDEX Corporation

Cardinal Health Inc.

NVR Inc.

Raymond James Financial Inc.

STERIS Plc

Hologic Inc.

MGM Resorts International

Tyler Technologies Inc.

PerkinElmer Inc.

Huntington Bancshares Incorporated

Charles River Laboratories International Inc.

Masco Corporation

L Brands Inc.

Paycom Software Inc.

Boston Properties Inc.

WestRock Company

NortonLifeLock Inc.

Incyte Corporation

Textron Inc.

FMC Corporation

Whirlpool Corporation

Devon Energy Corporation

DENTSPLY SIRONA Inc.

PulteGroup Inc.

J.M. Smucker Company

Alliant Energy Corp

J.B. Hunt Transport Services Inc.

Packaging Corporation of America

Fortune Brands Home & Security Inc.

Brown-Forman Corporation Class B

Evergy Inc.

Lumen Technologies Inc.

Citrix Systems Inc.

American Airlines Group Inc.

Diamondback Energy Inc.

LKQ Corporation

Westinghouse Air Brake Technologies Corporation

Leidos Holdings Inc.

UDR Inc.

Monolithic Power Systems Inc.

Snap-on Incorporated

CenterPoint Energy Inc.

PTC Inc.

Wynn Resorts Limited

Loews Corporation

Howmet Aerospace Inc.

C.H. Robinson Worldwide Inc.

Hormel Foods Corporation

Advance Auto Parts Inc.

Interpublic Group of Companies Inc.

Bio-Rad Laboratories Inc. Class A

Quanta Services Inc.

Lincoln National Corporation

Live Nation Entertainment Inc.

Allegion PLC

Fox Corporation Class A

ABIOMED Inc.

Tapestry Inc.

Atmos Energy Corporation

Mohawk Industries Inc.

Universal Health Services Inc. Class B

Mosaic Company

Iron Mountain Inc.

Host Hotels & Resorts Inc.

Hasbro Inc.

Cboe Global Markets Inc

BorgWarner Inc.

Jack Henry & Associates Inc.

Penn National Gaming Inc.

CF Industries Holdings Inc.

Lamb Weston Holdings Inc.

Henry Schein Inc.

F5 Networks Inc.

Pentair plc

W. R. Berkley Corporation

Everest Re Group Ltd.

Comerica Incorporated

DISH Network Corporation Class A

Newell Brands Inc

Norwegian Cruise Line Holdings Ltd.

Molson Coors Beverage Company Class B

Western Union Company

News Corporation Class A

Invesco Ltd.

Globe Life Inc.

Robert Half International Inc.

Regency Centers Corporation

Campbell Soup Company

Nielsen Holdings Plc

NiSource Inc

Pinnacle West Capital Corporation

Zions Bancorporation N.A.

DXC Technology Co.

A. O. Smith Corporation

Marathon Oil Corporation

Franklin Resources Inc.

Assurant Inc.

Discovery Inc. Class C

Kimco Realty Corporation

DaVita Inc.

Alaska Air Group Inc.

Huntington Ingalls Industries Inc.

Sealed Air Corporation

Juniper Networks Inc.

NRG Energy Inc.

People’s United Financial Inc.

PVH Corp.

APA Corp.

Federal Realty Investment Trust

Rollins Inc.

Leggett & Platt Incorporated

Cabot Oil & Gas Corporation

IPG Photonics Corporation

Vornado Realty Trust

Gap Inc.

Hanesbrands Inc.

NOV Inc.

Ralph Lauren Corporation Class A

Unum Group

Perrigo Co. Plc

Fox Corporation Class B

Discovery Inc. Class A

HollyFrontier Corporation

Under Armour Inc. Class A

Under Armour Inc. Class C

News Corporation Class B

These 10 stocks now make more than 21% of the index

1. Apple: 3.924345%
2. Microsoft: 3.300070%
3. Amazon.com: 2.947227%
4. Facebook: 2.049400%
5. Berkshire Hathaway Class B: 1.553777%
6. JPMorgan Chase: 1.520523%
7. ExxonMobil: 1.500398%
8. Alphabet Class C: 1.469428%
9. Alphabet Class A: 1.467526%
10. Johnson & Johnson: 1.443485%

The S&P500 is perfect for long term investing

If you believe in the future of America and in most of these companies in the index fund then the S&P 500 is a great choice for you. Hold this index fund long term to get the most out of it.

New retail investors are beginning to learn the power of investing. Compound interest can snowball your investments and grow your portfolio overtime. So, should you invest in the S&P500?

Absolutely. This long term index fund is a safe investment primarily due to it’s diversified assets and innovative companies. The S&P500 has proven to always be growing and I can’t wait to see where this index fund is in the decades to come.

Before you go

Let me know if you’re investing in any of these individual stocks in this index fund in the comments section below. I’d love to hear what you love about these companies and why you believe their further potential and growth.

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