In this year’s letter, Buffett singles out the long-term positives of low-cost investing, and the role Vanguard’s founder has played in making low-cost investing so widely available. “If a statue is ever erected to honor the person who has done the most for American investors, the hands-down choice should be Jack Bogle,” he writes.
He goes on to add that in the early years Jack was “frequently mocked by the investment-management industry” for urging investors to place their money in low-cost index funds. And now Jack has the “satisfaction of knowing that he helped millions of investors realize far better returns on their savings than they otherwise would have earned.”
When it comes to Vanguard’s low-cost investing, Buffett has put his money where his mouth is, as part of a $1 million bet. The legendary investor wagered with a New York investment firm that the Admiral™ Shares of Vanguard 500 Index Fund would outperform a collection of more expensive hedge funds over a ten-year period starting January 1, 2008. Buffett and the firm each put up $500,000. The winner will donate the money to charity.
Buffett reports in his latest letter that, as of the end of 2016, his bet on the index fund is winning by a wide margin. If he does win, the money will go to Girls Inc. of Omaha.
Note: I find it hilarious that he will take the 500k he wins from a highly-male industry and donate it to a charity for empowering young girls and women.
Submitted March 06, 2017 at 01:51PM by LouWeed http://ift.tt/2lwSSit
