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title: ""The Oracle of Omaha once again has proven that Wall Street’s pricey…"
date: 2017-09-17
source: facebook
type: Archer T. Ships shared a link.
---

# "The Oracle of Omaha once again has proven that Wall Street’s pricey…

*September 17, 2017 · Facebook*

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[http://www.aei.org/publication/warren-buffett-wins-1m-bet-made-a-decade-ago-that-the-sp-500-stock-index-would-outperform-hedge-funds/](http://www.aei.org/publication/warren-buffett-wins-1m-bet-made-a-decade-ago-that-the-sp-500-stock-index-would-outperform-hedge-funds/){target="_blank"}
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\"The Oracle of Omaha once again has proven that Wall Street's pricey investments are often a lousy deal. Warren Buffett made a \$1 million bet at end of 2007 with hedge fund manager Ted Seides of Protégé Partners. 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 Dec. 31.\
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The problem for Seides is his five funds through the middle of this year have been only able to gain 2.2% a year since 2008, compared with more than 7% a year for the S&P 500 --- a huge difference. That means Seides' \$1 million hedge fund investments have only earned \$220,000 \[through 2016\] in the same period that Buffett's low-fee investment gained \$854,000.\
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"For all intents and purposes, the game is over. I lost," Seides wrote. The \$1 million will go to a Buffett charity, Girls Inc. of Omaha.\"\
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[http://www.aei.org/publication/warren-buffett-wins-1m-bet-made-a-decade-ago-that-the-sp-500-stock-index-would-outperform-hedge-funds/](http://www.aei.org/publication/warren-buffett-wins-1m-bet-made-a-decade-ago-that-the-sp-500-stock-index-would-outperform-hedge-funds/){target="_blank"}
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