I recall back in 2007 in America a well-known hedge fund manager openly and publicly challenged Warren Buffett to a bet that the hedge fund manager would beat any investments that Warren Buffett selected over 10 years.
This bet commenced just before the Credit Crunch in 2008. Hedge funds are much higher risk and can bet on markets rising or falling. The hedge fund manager got his first calculation or bet right and bet that the market would suffer in 2008. However, over a 10 year period Warren Buffett’s fund I believe was three times bigger than the fund managed by the hedge fund manager. Where did Warren Buffett invest his money. Simply in a passive funds through Vanguard matching the S&P 500.
I recall a few years ago Warren Buffett happily invited Jack Bogle the founder of Vanguard in 1975 to the renowned Berkshire Hathaway Annual Investment Conference.
Just another example of being able to invest money in a passive diversified fund with nothing to worry about for 10 years.
Again, tax planning first and the right investment follows.
Trevor Downing FPMI FPFS
