Is Warren Buffett Too Big to Beat the Market?

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Last weekend, Berkshire Hathaway Chairman Warren Buffett spent roughly a fifth of his latest annual letter talking about what he calls “The Bet.”

What he didn’t talk about is even more interesting.

In the bet, made at the end of 2007, Mr. Buffett correctly wagered that several bundles of hedge funds selected by investor Ted Seides wouldn’t be able to outperform the S&P 500 over the ensuing decade. What Mr. Buffett didn’t mention directly in his letter is that Berkshire Hathaway didn’t outperform the S&P 500 over that stretch, either….

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This article was originally published on The Wall Street Journal.


Further reading

Benjamin Graham, The Intelligent Investor

http://jasonzweig.com/on-warren-buffett/

http://jasonzweig.com/the-higher-wisdom-of-warren/

Warren Buffett’s annual letters to Berkshire Hathaway Inc.’s shareholders

Warren Buffett’s letters to investors in the Buffett Partnerships and other early writings