Buffett’s Edge on Hedge Funds

Morningstar – Fees count in investing. Just ask storied investor Warren Buffett, who is far ahead in his highly publicized wager with the hedge fund industry. His bet: Over 10 years, a simple index fund tracking the Standard & Poor’s 500 will outperform the so-called experts who run hedge funds. Buffett’s advantage is that the hedge funds charge much higher fees than the index fund.

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