Huffpost Business

Warren Buffett Bets $320K That Management Fees Are Crap

Posted: Updated:

Warren Buffett, a longtime critic of the fees charged by some money managers, has put his own cash on the line -- or, at least, a small chunk of it -- in an attempt to prove his point.

Fortune.com reports that Mr. Buffett, the legendary value investor who runs Berkshire Hathaway, has entered into a bet with a firm that runs funds of hedge funds over whether or not funds handpicked by experts can beat the S&P 500 index over 10 years.

There is about $640,000 in the kitty, Fortune.com said, half put up by Mr. Buffett and half put up by Protege Partners, the fund-of-hedge-fund manager on the other side of the wager. At the end of the 10 years, the pool is expected to be worth about $1 million, which will go to a charity of the winner's choice.

Read the whole story at NYT