Buffett's index fund outpacing hedge funds in bet
OMAHA, Neb. (AP) — The recent strong performance of the stock market is making billionaire Warren Buffett's bet that an index fund will outperform a collection of hedge funds over 10 years look good.
The latest results in Buffett's bet with the money managers who own Protege Partners LLC were reported by Fortune magazine. Buffett made the bet in 2008 to demonstrate how hefty fees can hurt investment returns.
The Vanguard S&P 500 Admiral index fund Buffett picked is up 43.8 percent after six years.
The five funds of hedge funds Protege selected were up about 12.5 percent at the end of 2013.
The winner will donate at least $1 million to charity. The money both sides put up is invested in Berkshire Hathaway, and it was worth $1.27 million at year end.