Warren was taken to the cleaners.
My Fidelity fund is only charging me .01%.
I think you misunderstood. Warren didn’t make any investment with the hedge funds, the bet just tracked them. He bet the hedge fund guys based on an imaginary index of them while he stuck to his knitting.
He trounced them, needless to say. Something the wealthy, who bow at the feet of the hedgies, might want to consider.
No, I got it. I was just being silly.
The Vanguard fund tracked by Warren had an expense ratio of 0.04% (which I assume was taken into account when calculating returns).
The largest investment in my portfolio is also an S&P fund with an expense ratio of 0.01%. Both numbers are ridiculously low.
Thus the silliness of my comment.
Guess I missed the mark with my humor (nothing unusual).
Buffett in effect charges 1% compared to the usual corporate overhead of 10%. BRK goes very easy on the shareholders.
Might be apples to oranges but he makes a difference.
More baloney. Berkshire has 25 headquarters staff for a corporation with 360,000 employees.
That’s not 1%, it’s not even a tenth of a percent. It’s not even a hundredth of a percent - it’s 6 one thousandths of a percent.
But back to the original, the bet was between a low cost index fund and the hedgies. The index fund won, and not just by a little. And since there were multiple hedge funds that were tracked it’s fair to ask if any of them beat the index fund.
Not one of them did. Indeed, the best of them barely made half of what the index fund did. The worst of them barely broke even. Needless to say, the average of the hedge funds was trounced, almost 4-to-1 by the index fund.
Well, I can not find the Buffett quote. But it is Buffett who made some sort of statement to that effect. You will need to take up his time with your refutation.
Uh, that’s not how it works. You made the assertion, without evidence. As I have shown obvious counter factual evidence, it is up to you show the proof. You don’t just get to make up quotes out of thin air, then say “Well, you have to prove me wrong.”
Goofy,
I have to hang this one up. Mr. Google won’t help me. It is buried in trival garbage by bloggers. There are reams of Buffett YouTube materials.
Correct me in how Buffett categorized this. He said something about the general costs in an American corporation was 10% and his cost was 1%. I thought he was talking about the corporate overhead. However, that is phrased.
I do not claim a deep study of BRK. I have not spent my time that way.
You can call yourself the winner in this round. I do not have this at my finger tips. I need to get on with my day.
Good luck.