The Bet Buffett Made and What It Means Today
Warren Buffett once made a bet and I think it’s the greatest thing he’s ever done for the stock market.
8 years ago, he basically said something along the following lines to a group called Protege Partners:
I am going to show you something funny. I’ll buy an S&P 500 index fund and you invest your money into hedge funds. Let’s see who wins 10 years from now. Also, the winner of this bet gets $1 million.
Here are the results, so far:
I think this simple bet conveys a pretty powerful message. It shows how you don’t need to overthink the market or be intimidated by it. You may have seen the movie the Big Short or read about big market crashes, but if you have the patience and think America will go on forever, the tools available to you are there for the taking.