Warren Buffett won his multi-million dollar betFebruary 20, 2018
10 years ago Warren Buffett placed a bet against the hedge fund managers that the S&P Index fund would outperform a collection of hedge funds. That decade has now come and Warren has won the bet with the market outperforming the hedge fund group, Protege Partners, LLC.
Warren Buffett, among many other experienced investors, has been quite public about the fact that everyday investors are forking out huge fees when being involved with hedge funds for inferior gains.
As we talked about in our Vanguard Index fund article, investing in low-cost index funds is a great game-plan when it comes to efficient investing. For this particular bet, Warren Buffet selected a Vanguard Index fund and the Protege group selected 5 hedge funds of funds but haven’t announced which ones those exactly were.
The chance of beating the market is extremely difficult, professionals work very long hours each day and still won’t achieve it most of the time. Only by sheer luck or pure brilliance, they may come out on top for a period of time.
Warren Buffett donated his winnings to the Girls, Inc charity.