> Warren Buffett Blog: Buffett vs Ted Seides and hedgefunds

Friday, February 14, 2014

Buffett vs Ted Seides and hedgefunds

Six years ago, Buffett and Protégé's Ted Seides made a $1 million bet, with Buffett predicting that the S&P500 Index would outperform hedge funds over a 10-year period, and Seides taking the opposite view. 

Well, six years later, Buffett's S&P index fund, Vanguard Admiral shares, is up 43.8%, against an estimated 12.5% for the five hedge funds picked by Seides.

In the bet's first year, 2008, Admiral shares dropped 37% against the hedge funds' 24% decline. Buffett only took the lead in the race in 2012. Buffett's Admiral shares returned 32.3% last year, while Protégé's hedge funds gained just 11.8%. 

The winner gets to choose the charity that gets the $1 million, which has actually grown to nearly $1.3 million since the money was invested in Berkshire stock.


via https://www.finalternatives.com/node/26064