It seems that investing in a good well diversified exchange traded fund (ETF) such as S&P 500 that tracks the economy of a solid country like America can beat the majority of professionally managed hedge funds if we factor in the associated fund management fees and costs. Warren Buffett made a bet 10 years ago with an ex-fund manager and Buffett is set to win the bet by a large margin of difference soon.
This evidence proves the point that on a long term basis of 10 years and more, the odds of making better returns by investing in ETFs is higher than investing in professionally managed funds if we factor in that it is rare for any particular fund to consistently beat the index and even more so provide higher returns on a long term basis if we factor in the associated fund management fees and costs investors need to pay.
Warren Buffett decides not to do second wager against hedge funds, citing his age
Warren Buffett cited his eventual age of 97 after a theoretical ten-year bet as a reason not to go forward in an email to Mark Yusko.