Recent Berkshire Hathaway’s live streaming of Shareholder’s Meeting was the boon for his admirers. In this meeting he emphasised the value of Index Funds. Where he showed that he made a bet on Long Bets.org with Protege Partners,LLC. in 2008 that over 10 year period the Index Fund will beat biggest Hedge Funds of Hedge Funds. So, Protege Partners was given a choice that it can choose the best hedge funds managed in US and fund manager of that fund will choose smaller hedge funds to make funds of funds of industry’s best hedge fund.
So in this meeting he showed the result which stated cumulative return from S&P Index fund during the period 2008-2015 was 65.70% and of Funds of Funds was 21.97% thereby beating the funds of funds by 43.73%.
He critized the compensation structure of Hedge Funds as said that even boring,sloppy Index Funds can achieve goals with any hyper activeness. This seems to be one of the greatest lessons for Investors as why investor;s couldn’t use common sense and get carried away by so called experts.
Wanting experts in here for their view on this.