In December 2017, Buffett claimed victory, noting that the final tally has been an “eye-opener.” Buffett’s pick of a Vanguard S&P index fund delivered an average annual return of 8.5% compared to the fund-of-funds’ 2.4% average annual gain.
“American investors pay staggering sums annually to advisors, often incurring several layers of consequential costs,” Buffett wrote. “In the aggregate, do these investors get their money’s worth? Indeed, again in the aggregate, do investors get anything for their outlays?”
Buffett, who has long been a critic of fees charged by hedge funds, noted that the fund managers that were used in the bet had plenty of incentives.