Warren Buffett has shown us once again why he consistently tops the list of the most philanthropic billionaires. On Friday, the Berkshire Hathaway CEO gave $2.2 million to the charity Girls Inc. of Omaha, Nebraska, after winning a 10-year bet that hedge fund managers couldn't beat the stock market average, reports the Omaha World-Herald.
Roberta Wilhelm, the charity's executive director, says the proceeds will go toward a transitional housing program for young women who are too old to remain in foster care.
As described in a 2016 letter to Berkshire Hathaway shareholders, the multi-million dollar wager, which officially ended in December 2017, began in 2007 when Buffett predicted that the S&P 500 stock index would outperform hedge funds. He argued that, over time, active investment management by professionals would under-perform the returns of amateurs who were passively investing.
Buffett publicly wagered $500,000 and suggested a 10-year bet. "I then sat back and waited expectantly for a parade of fund managers ... to come forth and defend their occupation," Buffett writes in the letter. "After all, these managers urged others to bet billions on their abilities. Why should they fear putting a little of their own money on the line?"
Source :- cnbc
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