as declared in More“If a statue is ever erected to honor the person who has done the most for American investors, the hands-down choice should be Jack Bogle,” Buffett writes.
And in Buffett’s view, no one has done more for the average investor than Vanguard founder Jack Bogle.
“For decades, Jack has urged investors to invest in ultra-low-cost index funds.
It is, then, not superior investment returns but lower fees that Buffett sees as the real innovation made over the last generation of investors.
Warren Buffett hates fees.
Warren Buffett sticks to business, avoids politics in letter
As it stated in Buffett used the letter to again explain the advantages of low-cost index funds.
Buffett re-emphasized points he’s made in the past, such as his advice to avoid high Wall Street fees by investing in low-cost index funds.
“The bottom line: When trillions of dollars are managed by Wall Streeters charging high fees, it will usually be the managers who reap outsized profits, not the clients,” Buffett wrote.
“Both large and small investors should stick with low-cost index funds.”
Buffett devoted most of his letter to describing the evolution of Berkshire and the performance of the Omaha, Nebraska-based company last year.
Warren Buffett is embarrassing the hedge fund business with his historic wager
As it stated in Legendary investor Warren Buffett is crushing the hedge fund industry in his bet against their profession and their massive fees.
At that time, Buffett offered to wager $500,000 (for charity) that no investment professional could select a set of at least five hedge fund that would match the performance of an unmanaged S&P 500 index fund.
Buffett has been a critic of the hedge fund industry.
Hedge funds are known to charge investors fees known as “2-and-20”, meaning 2% of assets and 20% of profits.
That was Ted Seides, the co-manager of Protégé Partners, a funds-of-funds that allocate to hedge funds.
collected by :Dicson Walt