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 of his money that the S&P 500 would outperform a selection of hedge funds over the following 10 years. As of last week Friday, his S&P 500 index fund 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 – gained 2.1%, according to The Wall Street Journal.
Buffett agreed to give the prize money charity. Girls Inc. of Omaha, a non-profit that Buffett has supported a number of times before, is the beneficiary.
As the saying goes....."Simplicity is the ultimate sophistication"