Bogle's Bet

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lks
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Bogle's Bet

Post by lks »

Some time back, Jack made a bet that, I believe it was the S & P 500 Index, would beat another investment and, if Jack won, the proceeds would go to charity. What were the paticulars and what are the current to date results?
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jjustice
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Re: Bogle's Bet

Post by jjustice »

Are you thinking about the bet that Buffett made with hedge fund managers?

John
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abuss368
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Re: Bogle's Bet

Post by abuss368 »

I recall a bet Warren Buffett made comparing an index fund to hedge funds. I do not recall any bet that Mr. Bogle made - at least in a public sense.
John C. Bogle: “Simplicity is the master key to financial success."
BYUvol
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Re: Bogle's Bet

Post by BYUvol »

NYBoglehead
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Re: Bogle's Bet

Post by NYBoglehead »

Going to take a wild guess and say that Buffett will win this year and surpass the 5 fund of fund's average for the cumulative period to this point. This is going to be pretty embarassing for Protoge when year 10 rolls around. The way I see it is if they fail to beat the S&P 500 by any meaningful margin they lose. For the fees they charge and the risks they take mearly outperforming is still a loss.
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mhc
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Re: Bogle's Bet

Post by mhc »

Buffet and the hedge funds are in the red, while the bet invested in a Treasury bond is up 45%. Beautiful.
NYBoglehead
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Re: Bogle's Bet

Post by NYBoglehead »

mhc wrote:
Buffet and the hedge funds are in the red, while the bet invested in a Treasury bond is up 45%. Beautiful.
We shouldn't get too carried away with it being in the red. 2008 was a terrible year. If they started in 2009 both would be up huge. Makes sense that the bet is over a 10-year horizon. I'll bet for the entirety of the bet (2008-2017) that the S&P 500 investment will beat the Treasury bond investment.
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CABob
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Re: Bogle's Bet

Post by CABob »

lks wrote:Some time back, Jack made a bet that, I believe it was the S & P 500 Index, would beat another investment and, if Jack won, the proceeds would go to charity. What were the paticulars and what are the current to date results?
My memory fails me (along with some other bodily functions), but, I think I also remember a Jack Bogle bet along the lines you suggest. As I recall it it was for a long period like five or ten years.
Bob
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bobcat2
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Re: Bogle's Bet

Post by bobcat2 »

Jack Bogle made a bet with Bob Markman several years ago that a broad based Vanguard index stock fund would do better than the high tech funds Markman was touting. Bogle won the bet and I believe that they made a second bet along the same lines.

This tale has a tragic ending. Bogle would probably have won the second bet, or perhaps won the second bet. However, Markman's funds did so poorly that Markman's family and many of his clients had lost a lot of money. Markman tried to make up for these losses about two years ago by committing suicide and leaving a note instructing his wife to use the proceeds of his life insurance policy to help the family and the clients. (Markman had held the life insurance long enough by the time he took his life that the insurance covered suicide.)

bet: http://articles.sun-sentinel.com/2002-0 ... an-capital

death: http://www.startribune.com/templates/Pr ... =105556728

BobK
In finance risk is defined as uncertainty that is consequential (nontrivial). | The two main methods of dealing with financial risk are the matching of assets to goals & diversifying.
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