We had this on Somersoft, so here's an update Stakes A $1 million donation to the winner’s charity of choice The Bet Between Buffett And Protégé Partners Summary Warren Buffett argued that investors would be better off putting their money on S&P 500 Index Funds as the cost of hedge funds would undermine profits. Protégé Partners argued that the best hedge funds will be able to make good long and shorts decisions regardless of the market thereby beating the market after deducting cost. The historical trend shows that the average investors with little financial knowledge can profit from SPY n the long term. Current PE of SPY is too high to enter. The Lesson for Every Investor From Warren Buffett's Million-Dollar Bet In the recent Berkshire Hathaway (BRK.A, BRK.B) annual general meeting, Chairman Warren Buffett (a.k.a. the Oracle of Omaha) released the result of his bet with Protégé Partners, LLC. Buffett said this bet was featured on longbets.org. At the end of December, with just two years left to run, Buffett maintains a commanding lead: Vanguard Index Fund Admiral Shares: 65.67% Protege Partners' portfolio of funds of hedge funds: 21.87% Even Ted Seides, the then-Protege Partners' partner, who initiated the bet, admitted last year that "[t]he odds now are that we'll need to see a severe market contraction for our side of the ledger to state an epic comeback. No one wins when that occurs." That's a little more humility than he demonstrated at the outset of the bet, when he estimated his chances of winning at 85%; Buffett, less overconfident, thought his odds of success were 60%.