Posted:
#1
https://money.cnn.com/2008/06/04/news/newsmakers/buffett_bet.fortune/index.htm
Pretty cool bet and interesting article. Enjoy
Warren Buffet bets Hedge Funds Can't beat S&P
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Views: 512
Posts: 10
Posted:
#5
Buffet is smart, but let's face it, he always gets a head start now on anything he does. A hell of a lot easier to run money for BH always getting a head start.
It's like this.
"Warren Buffet says he's increasing his stake in blah, blah, blah." The media, who have nothing better to do, trumpet the news for the next 24 hours, and blah blah blah moves about 10-15% up immediately.
Buffet is smart, a lot smarter than my sorry ass, but he ain't "God" like these media clowns want you to believe.
The deal is this.....do your own work, run your own money, lie in your own bed.
Warren Buffet is "God".......................
Posted:
#6
Buffet is an index fund guy anyway.
In response to a question about why Buffett recommends index funds to investors, he said that for "a know-nothing investor, a low-cost index fund will beat professionally managed money." He also said he had a standing offer to anyone who could name 10 hedge funds that will beat a low-cost index fund. No one has taken him up on his offer.
Asked later why he didn't take his own advice on index funds, he said he thought Berkshire could beat the S&P by a couple of percentage points, "just not a whole lot better."
In response to a question about why Buffett recommends index funds to investors, he said that for "a know-nothing investor, a low-cost index fund will beat professionally managed money." He also said he had a standing offer to anyone who could name 10 hedge funds that will beat a low-cost index fund. No one has taken him up on his offer.
Asked later why he didn't take his own advice on index funds, he said he thought Berkshire could beat the S&P by a couple of percentage points, "just not a whole lot better."
Posted:
#10
One other aspect of the bet...from a commentator..
Since Ben Bernanke is not going to defend the dollar, globalized inflation is bound to result in higher inflation rates in the USA...probably sooner,rather than later. And while it is impossible to predict the future...it is quite possible to imagine a world 10 years from now when the $320,000 Warren Buffet and Protégé spent on their T-bond will be worth less than $320,000 in today’s money. It is not such a stretch to think that $1million in 2018 will be worth less than $320,000 today.
So, here’s our bet: Buffett will beat Protégé, but inflation will defeat
them both. An ounce of gold is $898 today. At that price the two paid 366 ounces for their T-bond. They will have $1 million ten years from now. Our bet is that $1 million won’t buy 366 ounces of gold in 2018.
Since Ben Bernanke is not going to defend the dollar, globalized inflation is bound to result in higher inflation rates in the USA...probably sooner,rather than later. And while it is impossible to predict the future...it is quite possible to imagine a world 10 years from now when the $320,000 Warren Buffet and Protégé spent on their T-bond will be worth less than $320,000 in today’s money. It is not such a stretch to think that $1million in 2018 will be worth less than $320,000 today.
So, here’s our bet: Buffett will beat Protégé, but inflation will defeat
them both. An ounce of gold is $898 today. At that price the two paid 366 ounces for their T-bond. They will have $1 million ten years from now. Our bet is that $1 million won’t buy 366 ounces of gold in 2018.
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