Investment Performance

Our performance is so high I chuckle when I read this, but it should be remembered that we paid the price in hard work, patience and superior research.-@TylerInvestment


Buffett made a bet in 2008 with the money managers who own Protege Partners LLC. The winner will be able to donate at least $1 million in the charity of their choice at the end.
The latest results were reported first Wednesday by Fortune magazine. Buffett did not immediately respond to a message.

Buffett's chosen low-cost S&P 500 fund gained 2.08 percent in 2011 to beat the five portfolios of hedge funds Protege chose, which were down 1.86 percent.

Through four years, the hedge funds are down 5.89 percent. Buffett's index fund is down 6.27 percent.

Both sides of the wager performed poorly in the first year when the stock market collapsed in 2008. But the portfolio of hedge funds fell 23.9 percent, while the Vanguard S&P 500 index fund Buffett chose plummeted 37 percent.

Buffett has said that most investors will do better over time with a low-cost index fund than by paying steep fees to investment managers. In the past, Buffett has devoted parts of his annual letters to Berkshire shareholders to highlighting the perils of paying hefty fees.

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