I have written before about Warren Buffett’s million dollar bet with New York asset manager Protégé Partners that the Vanguard S&P 500 Index Fund, over a period of ten years, would beat a collection of hedge funds selected by Protégé. The proceeds from the bet will go to charity.
The bet was made in 2008 and the results of the just completed 7th year are in. So far its not even close. Buffett’s money in the Vanguard S&P 500 Index Fund is up 63.5 percent while the hedge funds are up only 19.6 percent.
There is a lesson in there somewhere. Index funds might not be sexy investments, but they produce great results.
For more information about the bet check out the Yahoo News article “Buffett Way Ahead in $1 mn Wager Against Hedge Funds.”