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Buffett’s Hedge Fund Bet

Portfolio
Eight years ago, Warren Buffett made a famous bet with hedge fund manager Protege Partners. The bet is simple (view it at Long Bets website):

“Over a ten-year period commencing on January 1, 2008, and ending on December 31, 2017, the S&P 500 will outperform a portfolio of funds of hedge funds, when performance is measured on a basis net of fees, costs and expenses.”

These are the returns of each so far:

buffetthedgebet

At Berkshire Hathaway’s annual meeting, Buffett detailed his thinking behind the making the bet in the first place (forward to 2:42:20 in the video).


Jack Bogle on Warren Buffett’s hedge fund bet


NPR’s Planet Money interviewed Jack Bogle about the bet as well. The podcast also interviewed

Armed With An Index Fund, Warren Buffett Is On Track To Win Hedge Fund Bet


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Buffett’s Hedge Fund Bet

in Berkshire Hathaway Jack Bogle Warren Buffett

Portfolio Eight years ago, Warren Buffett made a famous bet with hedge fund manager Protege Partners. The bet is simple (view it at Long Bets website): "Over a ten-year period commencing on January 1, 2008, and ending on December 31, 2017, the S&P 500 will outperform a portfolio of funds of hedge funds, when performance […] Read More

Chipotle Q1 2016 Earnings Call

in Chipotle

Portfolio Chipotle: Same-store sales dropped 29.7 pct for first quarter Chipotle Mexican Grill Posts First-Ever Quarterly Loss […] Read More

How The Economy Works by Ray Dalio

in All-Stars Behavioral Finance Benjamin Graham Efficient Markets Ray Dalio The Market

https://youtu.be/PHe0bXAIuk0 Ray Dalio, Wikipedia Ray Dalio's, Principles Forbes: Hedge Fund King Ray Dalio's All Weather Fund Down 7% In 2015 […] Read More

TBT: Inside the Budget of a Millionaire

in How To Make A Million Money & Mind

Did you know that for every 100 millionaires who don't "budget", there are about 120 that do. More than half of the nonbudgeters invest first and spend the balance of their income. Many call this the "pay yourself first" strategy. These people invest a minimum of 15 percent of their annual realized income before they […] Read More

Keep it in Perspective

in FM The Market

With the S&P 500 now down about 10% from its all-time high in May 2015, a certain level of fear has returned to the markets. Among the many concerns investors have are the dramatic slowdown in Chinese economic growth, a meltdown in energy and other commodity prices, the questionable state of European bank balance sheets, […] Read More

10-Plus Years In The Making

in Client Letters Mutual Funds Performance Portfolio Management Value Investing Warren Buffett Wealth & Whatnot

I am in the middle of writing the annual letter to my clients and cannot help but contain my enthusiasm for some of the good news I’m sharing with them that has been over 10 years in the making. And it’s all contained in the attached chart. Each dot on the chart represents the cross-section […] Read More

Organic Growth

in Investing The Market

Organic food has gone from being a fashion fad twenty years ago to becoming a staple in the average American diet. Since the Organic Trade Association (OTA) started tracking the data in 1997, organic food sales have risen at a 15% compound annual growth rate and now make up around 5% of total food sales […] Read More

If It Feels Bad Do It

in The Market

How are you feeling about your investments these days? Are you upset because you haven't quite kept up with your friends? Are you emboldened to take more risk following such consistently positive market returns of late? Or do you remain distrustful of the stock market following the tumultuous not-too-distant past? Emotion is every investor's constant […] Read More

The Wealth Gap: The Role of Marriage

in African-American Interest Frugality Wealth Gap The Wealth Gap: The Role of Marriage thumbnail

I want to revisit the topic of the wealth gap, the disparity in net worth between white and black households. A 20-to-1 disparity. As in the past, I don't want to concentrate so much on the difference itself, but rather some causes of the gap. Previously I talked about how purchasing a home falls short […] Read More

The Wealth Gap: The Role of Conspicuous Consumption

in Wealth Gap The Wealth Gap: The Role of Conspicuous Consumption thumbnail

source: sidehike The Pew Study reports a stark difference in wealth between black and white households. The median wealth of white households is 20 times that of black households. The study points to differences in home ownership as the culprit. In a previous post I suggested it is not the difference in home ownership that […] Read More