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· "Bonds had become a dumb -- a really dumb -- investment compared to American equities" or stock, he said.
· So, in 2012, Buffett and Seides dumped their Treasury bonds and used the money to buy B-class shares of Buffett's Berkshire Hathaway (BRKB).
· By the end of the bet, the Berkshire shares were worth $2,222,279 -- about $1.2 million more than they'd hope to earn with the bonds.
· In short, the "purportedly 'risk-free' long-term bonds" ended up being a "far riskier investment" than common stocks.
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The Bet That Proved Passive (Index) Investing is Superior to Active Management
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In a 2005 letter to the shareholders of his company wrote that active management professionals (hedge fund managers) not outperform individuals who used a passive (index) investing strategy over a ten-year period. To prove his sincerity in this belief he offered $500,000 (for charity) to anyone w...
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Buffett acknowledged a lesson learned from an interesting plot twist over the course of the bet.
· At the outset of the wager, Buffett and Seides bought about $300,000 worth U.S. Treasury bonds, widely considered a safe investment.
· The expectation was that the bonds wo...
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John Clifton "Jack" Bogle (May 8, 1929 – January 16, 2019) was an American investor, business magnate, and philanthropist. He was the founder and chief executive of The Vanguard Group, and is credited with creating the first index fund. An avid investor and money manager himself, he preached inve...
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CURATED FROM
Attempting get rich schemes may very well lead to going broke quickly. Trying to get rich quick is gambling it is not investing.
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Warren Buffett (CEO Of Berkshire Hathaway): He’s an American investment wizard and businessman who started investing in stocks at 11 years old and real estate investing at 14 years old. He’s had a few businesses and grew Berkshire Hathaway into one of the most valuable companies in the world base...
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