Buffet bet $1M that S&P 500 ETF (VOO) index fund would beat hedge fund portfolio selected by Ted Seides. Low cost index funds performing generally better is well documented. Buffet's bet is common sense.
Reasons why:
- lower cost is important over longer term.
- Well diversified index fund picks every success, unlike actively managed portfolio.
Buffet bet $1M that S&P 500 ETF (VOO) index fund would beat hedge fund portfolio selected by Ted Seides. Low cost index funds performing generally better is well documented. Buffet's bet is common sense.
Reasons why:
- lower cost is important over longer term.
- Well diversified index fund picks every success, unlike actively managed portfolio.