Buffet wagers $500,000 that no investment pro could select a set of at least five hedge funds would match the performance of a low-cost index fund charging only token fees.
Hilarious Letter titled: The Bet or How your Money finds its way to Wall Street
"I know the height, depth, length, breadth of the energy flowing from that simple 4 letter work - 'fees' - when it is spoken to Wall Street "
He speaks about passive investing. And his strong conviction in them as an investment option, for both large and small investors, over active funds.
PG 21-25 has the Bet - https://imgur.com/a/v59Wk Original Letter - 2006 - http://www.berkshirehathaway.com/letters/2016ltr.pdf
Spoiler Alert - He won the bet in 2018 https://www.reddit.com/r/personalfinance/comments/7ysena/warren_buffet_just_won_his_tenyear_bet_about/
Submitted April 23, 2018 at 01:32AM by IndianInvesting101 https://ift.tt/2Ji9UYP
