Fund is an index fund, which collects the funds of many investors who don't know how to invest, but want to beat inflation or make more profits, and gives them to professional fund managers to earn higher investment returns for investors. passive fund, which invests by tracking the stock market index compiled by index companies, is also the most admired fund type of Warren Buffett. He once said a meaningful sentence, "buy an index fund and work hard!" " .
Warren, 2007. Buffett challenged the financial professionals in the hedge fund industry: during the decade from 2008 1 October 65438+ to February 20071,after deducting commissions, costs and all other expenses, the performance of the S&P 500 index will be better than that of the hedge fund portfolio. TedSeides, the hedge fund manager of ProtégéPartners, the top hedge fund on Wall Street, accepted Buffett's bet. He chose five excellent hedge funds on Wall Street and predicted that they would surpass the S&P 500 index within ten years. However, the facts are cruel. Until 20 17, his five funds could only increase by 2% a year. 2%, while the S&P 500 index rose by more than 7% a year, which is an amazing gap. This means that Mercedes' $6,543,800+investment in hedge funds earned only $220,000 in the same period (2065,438+2006), while Buffett's low commission investment earned $854,000.