The lesson Warren's making isn't that you can't beat the market. Of course, Warren himself is an example you can. It's also not a statement about any individual hedge fund, which may have "different goals only for sophisticated investors."* Instead, it's that on balance, by far most managers don't beat the S&P 500 on an after-fee basis.
And if you include taxes in those fees and the benefit of deferred tax liabilities it's even harder to beat an index fund.
* It's reasonable to be skeptical about any fund having a goal that's anything other then maximizing long-term returns.
And if you include taxes in those fees and the benefit of deferred tax liabilities it's even harder to beat an index fund.
* It's reasonable to be skeptical about any fund having a goal that's anything other then maximizing long-term returns.