Warren Buffett won his bet, and mainstream investors could be a bit better off, or at least more knowledgeable, because of it.
As anticipated, the billionaire from Nebraska revealed the final results of his 10-year investment bet, in which he wagered that a humble stock-market index mutual fund could beat some of the brightest money managers on Wall Street. The results weren't much of a surprise, considering that Buffett last year revealed that he held a commanding lead. Both disclosures were made in his annual letters to shareholders as chairman of conglomerate Berkshire Hathaway.
Buffett made the bet in December 2007, arguing that a fund holding the same stocks as found in the Standard & Poor's 500 index could beat the combined performance of a group of hedge funds over the following 10 years. Hedge funds are investment partnerships that cater to wealthy individuals and institutions. They charge high fees for their supposed financial acumen.
Source : usatoday
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