“Over a ten-year period commencing on January 1, 2008, and ending on December 31, 2017, the S&P 500 will outperform a portfolio of funds of hedge funds, when performance is measured on a basis net of fees, costs and expenses.”

This is the bet between Warren Buffett and Protege Partners, LLC. The stakes are $1,000,000.

DumbAgent.com agrees with Buffett’s statement wholeheartedly. When reading the detailed analysis, however, we have some minor disagreements. Buffett states that some ‘Active’ investors will outperform the market while some ‘Passive’ investors will underperform. We believe that the investors’ performance will not be consistent throughout this time and that most will perform well sometimes and badly at other times.

The end result, however, is that the S&P 500 will outperform the hedge funds.

You can find the bet, its terms, and the link to make a wager yourself, here.