Millions of people invest billions of dollars in the stock market to make their money grow. Some pool their money with other investors in high risk investment vehicles known as hedge funds. Hedge fund managers employ a variety of strategies with the goal of doing better than the stock market as a whole. The third richest person in the world, Warren Buffett, made a $1 million bet that he could beat the earnings of any hedge fund with his own investments in low-risk index funds. A hedge fund manager took him up on the challenge. Listen to the story to learn who is on his way to winning the bet and why.
Note: At the end of the 10 year time period, Warren Buffett won the bet as the index funds outperformed actively managed hedge funds.
Story Length: 3:39
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