In December 2017, Buffett claimed victory, noting that the final tally has been an “eye-opener.” Buffett’s pick of a Vanguard S&P index fund delivered an average annual return of 8.5% compared to the fund-of-funds’ 2.4% average annual gain.

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...

“Wise investors won't try to outsmart the market.”

-         John C. Bogle

Attempting get rich schemes may very well lead to going broke quickly.

Trying to get rich quick is gambling it is not investing.

For more insight and information on passive (index) investing a good source is Jack Bogle’s book:

• Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor

Warren Buffett the CEO of Berkshire Hathaway is one of the most successful investors of all time, he is also known as the “Oracle of Omaha.”

In 2007 hedge fund manager Ted Seides accepted the challenge. Buffet chose a low-cost Vanguard S&P fund and Seides picked five funds-of-funds with interests in more than 200 hedge funds to go up against Buffett. The official amount for the bet was 1 million dollars.

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...

·        "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 ...

Warren Buffett gave $2.2 million to the charity Girls Inc. of Omaha, Nebraska, after winning a 10-year bet that hedge fund managers couldn’t beat the stock market average, reports the Omaha World-Herald.

“Net return is simply the gross return of your investment portfolio less the costs you incur. Keep your investment expenses low, for the tyranny of compounding costs can devastate the miracle of compounding returns.”

-         John C. Bogle

Warren Buffett believed the large fees from active managers was not worth the cost. That in fact the exorbitant fees only enrichen the finance industry and hurt the consumer.

“Performance comes, performance goes, fees never falter.”

-         Warren Buffett

By the end of the bet on the $1 million invested in the funds chosen by Seides would have gained $220,000 in the same time period that Buffett’s low-fee investment would have earned $854,000.

Warren Buffett pointed out that:

·        Making money on the stock market; "Does not require great intelligence, a degree in economics or a familiarity with Wall Street jargon."

·        "What investors then need instead is an ability to both disregard mob fears or enthusiasms and to...

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...

Any individuals who invested in these hedge funds also lost out on making money. While at the same time the individuals running the hedge funds enjoyed “earning” their outrageous fees.