The Money Mustache Community

General Discussion => Welcome and General Discussion => Topic started by: FiftyIsTheNewTwenty on January 05, 2018, 01:23:43 PM

Title: That index funds beat managed - Warren Buffett Won a Decade-Old $1M Bet
Post by: FiftyIsTheNewTwenty on January 05, 2018, 01:23:43 PM
"With 2017 over, Warren Buffett has sealed his victory over hedge funds in a bet he made a decade ago. The Berkshire Hathaway chairman in 2007 bet $1 million that the S&P 500 would outperform a selection of hedge funds over 10 years.

As of Friday, his S&P 500 index fund had compounded a 7.1% annual gain over that period. The basket of funds selected by Protégé Partners, the managers with whom he made the bet, had gained 2.1%, according to The Wall Street Journal. Buffett agreed to give the prize money to Girls Inc. of Omaha, Nebraska, a nonprofit he has previously supported."

https://fee.org/articles/warren-buffett-won-a-decade-old-1m-bet/ (https://fee.org/articles/warren-buffett-won-a-decade-old-1m-bet/)
Title: Re: That index funds beat managed - Warren Buffett Won a Decade-Old $1M Bet
Post by: Travis on January 05, 2018, 01:41:16 PM
So after fees the hedge fund did as well as a CD. That has to be humiliating.
Title: Re: That index funds beat managed - Warren Buffett Won a Decade-Old $1M Bet
Post by: boarder42 on January 05, 2018, 01:51:51 PM
another one has taken him up on the same bet.  they'll never learn.
Title: Re: That index funds beat managed - Warren Buffett Won a Decade-Old $1M Bet
Post by: Zamboni on January 05, 2018, 02:02:51 PM
It just makes me sad that they dupe hard working people into going along with their high fee, low performance bullcrap.