Business · Markets · 1 day ago
Analyst favors S&P 500 funds and Alphabet for long-term investors
Market writer James Brumley has outlined investment choices for people seeking to grow savings over the long term.
He says traditional savings accounts may not keep pace with inflation, even when money market rates are around 4% in the United States.
For investors who do not want to choose individual companies, he points to funds that track the S&P 500, an index of 500 large US companies.
The index represents more than 80% of the total value of the US stock market, and its long-term average annual return has been about 10%, including reinvested dividends.
That return is a historical average, not a guarantee, and Brumley says money needed soon or for emergencies should be protected from market swings.
For investors interested in individual shares, his favorite for 2026 is Alphabet, Google's parent company.
He says search advertising, YouTube, Android, Google Play and subscriptions give Alphabet significant business beyond artificial intelligence, while Google handles about 90% of internet searches worldwide.
Market writer James Brumley recommends S&P 500 index funds for long-term investors who do not want to choose individual stocks.
He named Alphabet as his preferred individual stock for 2026.
Brumley said traditional savings accounts may not keep pace with inflation over the long term.
He cited the S&P 500’s long-term average annual return of about 10%, including reinvested dividends.
He said about 80% of Alphabet’s revenue comes from activities outside artificial intelligence.
- Who
- James Brumley, a market writer for The Motley Fool.
- What
- He recommended S&P 500 funds for long-term investors and named Alphabet as his preferred individual stock for 2026.
- When
- The article was published on October 10, 2026; the recommendation is for 2026.
- Where
- The recommendations concern U.S. investments and Alphabet’s global businesses.
- Why
- Brumley said stocks can help long-term savings grow faster than inflation, while S&P 500 funds offer a simple option for investors who do not want to pick individual stocks.
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- Recommended index funds
- SPDR S&P 500 ETF Trust (SPY) and Vanguard S&P 500 ETF (VOO)
- Preferred individual stock for 2026
- Alphabet
- S&P 500 long-term average annual return
- About 10%, including reinvested dividends
- Alphabet revenue from non-AI activities
- About 80%
- Google share of global internet searches
- About 90%
- Android share of global mobile devices
- About 69%



