Deals
Buffett Stings Hedge Funds Anew Over Their `Misbegotten' Rewards
- Billionaire encourages investment in low-cost index funds
- Letter reiterates optimism about U.S., praises immigrants
Buffett Renews Criticism of Hedge Funds in Annual Letter
This article is for subscribers only.
Warren Buffett’s sweeping endorsement of index investing is sure to sting the hedge-fund industry and encourage the stampede into assets that passively track the market.
In his well-read annual letter to Berkshire Hathaway Inc. shareholders on Saturday, he estimated that investors wasted more than $100 billion on high-fee Wall Street money managers over the past 10 years. He declared an early victory in his decade-long bet that a basket of hedge funds would fail to keep pace with an an S&P 500 Index fund. And he called Jack Bogle, the Vanguard Group founder who pioneered low-cost market trackers, a “hero.”