Warren Buffett breaks down the most important lessons he learned from his $1 million bet against hedge funds (BRKA)

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February 24, 2018 4:13 PM

Buffett won the million-dollar bet he made against the hedge fund industry.

Warren Buffett in 2007 entered a
He won the bet late last year.
In his

At the end of 2017, Warren Buffett won a million-dollar bet he made against the hedge fund industry.

The Berkshire Hathaway CEO had bet with Protégé Partners in 2007 that

worth $1 million Berkshire Hathaway's class B shares

The bet was initially made as a sort of protest against the hefty fees that hedge funds charged; Buffett wagered that investors could get more of their money's worth by choosing a cheap stock-index fund.

"During the ten-year bet, the 200-plus hedge-fund managers that were involved almost certainly made tens of thousands of buy and sell decisions ... Protégé and I, meanwhile, leaning neither on research, insights nor brilliance, made only one investment decision during the ten years."

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