Berkshire AGM transcribed Buffett proves ETFs beat active money managers
Embed Code (recommended way)
Embed Code (Iframe alternative)
Please login or signup to use this feature.

The highlight of this segment of the Berkshire AGM comes towards the end when chairman Warren Buffett delivers a masterclass in why Exchange Traded Funds are always going to outperform actively managed portfolio managers. It's a subject about which the Oracle of Omaha is hugely passionate - and one where he took a $1m personal bet to prove the point. And prove it he certainly has. Eight years into a ten year challenge against the best Wall Street could offer, the performance by Buffett's simple S&P500 Index tracker is smashing Hedge Funds - by a staggering 40 percentage points (65% vs 22%). Also in this segment you'll find Buffett and Munger's position on the controversy around their close ally, the Sequoia Fund, which invested 30% of its clients' assets into the Valeant "chain letter" scheme; reasons why the Berkshire Hathaway conglomerate will never be dismantled; and why most big banking stocks are likely to be poor investments into the future.

Licence : All Rights Reserved