3 ms·

This bet ends in less than 2 years. Does anybody know what would be the result if it would end now? edit: I guess it depends on the detailed terms that they ha

by comboy 10y ago

This bet ends in less than 2 years. Does anybody know what would be the result if it would end now? edit: I guess it depends on the detailed terms that they haven't disclosed, but educated guesses are fine

OscarCunningham 10y ago
I seem to remember that as of Berkshire Hathaway's annual shareholder meeting in April, Buffett was winning by a long way.
evanpw 10y ago
Buffett is winning 66% to 22%: http://www.cnbc.com/2016/02/16/warren-buffett-slips-but-still-winning-epic-hedge-fund-bet.html http://www.cnbc.com/2016/02/16/warren-buffett-slips-but-stil....
phonon 10y ago
65.67% vs. 21.87% returns so far (net after fees) http://fortune.com/2016/05/11/warren-buffett-hedge-fund-bet/ http://fortune.com/2016/05/11/warren-buffett-hedge-fund-bet/ Almost impossible for Warren to lose at this point.
- comboy 10y ago
  Whoa, thanks. I would have definitely taken the losing side of the bet.
  - infinite8s 10y ago
    His bet is on returns net of fees. There are some theories that any alpha generated by a fund is eventually just captured in the fee structure.
- emblem21 10y ago
  Hedge funds are downstream of money with performance-driven interest. Markets (the major players that skew the averages) are downstream of banks who use money the Fed's pay the interest on. His gamble is that the elite would rather give the market unlimited welfare a la Japan to keep the signals of valid global demand alive. The Fed will not allow a correction... mostly for political reasons.
  - AnimalMuppet 10y ago
    I don't think that was the gamble when Buffet made the bet. The gamble then was, in ten years of completely unknown (at the time) market conditions, the S&P 500 will outperform hedge funds. If you picked a different 10 years (say, 199X-200X or 200X-201X), I suspect that Buffet wins for most values of X, but I have not checked.

3 ms·

This bet ends in less than 2 years. Does anybody know what would be the result if it would end now? edit: I guess it depends on the detailed terms that they ha

by comboy 10y ago

OscarCunningham 10y ago
I seem to remember that as of Berkshire Hathaway's annual shareholder meeting in April, Buffett was winning by a long way.
evanpw 10y ago
Buffett is winning 66% to 22%: http://www.cnbc.com/2016/02/16/warren-buffett-slips-but-still-winning-epic-hedge-fund-bet.html http://www.cnbc.com/2016/02/16/warren-buffett-slips-but-stil....
phonon 10y ago
65.67% vs. 21.87% returns so far (net after fees) http://fortune.com/2016/05/11/warren-buffett-hedge-fund-bet/ http://fortune.com/2016/05/11/warren-buffett-hedge-fund-bet/ Almost impossible for Warren to lose at this point.
- comboy 10y ago
  Whoa, thanks. I would have definitely taken the losing side of the bet.
  - infinite8s 10y ago
    His bet is on returns net of fees. There are some theories that any alpha generated by a fund is eventually just captured in the fee structure.
- emblem21 10y ago
  Hedge funds are downstream of money with performance-driven interest. Markets (the major players that skew the averages) are downstream of banks who use money the Fed's pay the interest on. His gamble is that the elite would rather give the market unlimited welfare a la Japan to keep the signals of valid global demand alive. The Fed will not allow a correction... mostly for political reasons.
  - AnimalMuppet 10y ago
    I don't think that was the gamble when Buffet made the bet. The gamble then was, in ten years of completely unknown (at the time) market conditions, the S&P 500 will outperform hedge funds. If you picked a different 10 years (say, 199X-200X or 200X-201X), I suspect that Buffet wins for most values of X, but I have not checked.