Legendary investor Warren Buffett has generated substantial returns for the shareholders of his company, Berkshire Hathaway. From 1964 to 2022, Berkshire delivered an overall gain of 3,787,464%.

Given the 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 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. “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.”

Buffett recommended using Vanguard’s S&P 500 index fund......

During Berkshire’s 2021 annual shareholders meeting, Buffett addressed a question about whether his directive to the trustees of his estate to invest significantly in an index fund represents a lack of confidence in Berkshire’s management.

“Well, no, because we’re talking about way less than 1% of my estate,” he clarified, noting that 99.7%-plus of his estate will either go to philanthropies or to the federal government.

“I just think that the best thing to do is buy 90% in S&P 500 index fund,” Buffett emphasized.