Warren Buffett wins 10-year-old hedge fund bet

The Oracle of Omaha once again has proven that Wall Street’s pricey investments are often a lousy deal. Warren Buffett wins $1M bet made with hedgie a decade ago.

Warren Buffett made a $1 million bet at end of 2007 with hedge fund manager Ted Seides of Protégé Partners.

The New York Post reports that Buffett wagered that a low-cost S&P 500 index fund would perform better than a group of Protégé’s hedge funds.

Buffett’s index investment bet is so far ahead that Seides concedes the match, although it doesn’t officially end until December. 31st.

The problem for Seides is his five funds through the middle of this year have been only able to gain 2.2 percent a year since 2008, compared with more than 7 percent a year for the S&P 500 — a huge difference.

That means Seides’ $1 million hedge fund investments have only earned $220,000 in the same period that Buffett’s low-fee investment gained $854,000.

Hit the link below to access the complete New York Post article:

Warren Buffett wins $1M bet made with hedgie a decade ago

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