What We’d Like To Ask Warren Buffett at the Berkshire Hathaway Annual Meeting
Warren Buffett has a well-publicized wager with Protege Partners, a fund of funds firm in New York. Essentially, Buffett bet $1 million dollars that the S&P 500 index would outperform a basket of five funds of funds picked by Protege over 10 years. Buffett is betting that the extra layer of fees (both at the hedge fund level and at the fund of fund level) will outweigh any benefits from the active stock picking of the underlying hedge funds. The results of the third year have just been released and Protege is still winning (or losing less).
What we’d like to know from Buffett is: If the basket of fund of funds was made up entirely of his top candidates for CIO successor positions, would he still make the bet?