How DSIJ has been Creating Wealth for Investors since 1986

DSIJ’s unwavering commitment to provide unbiased advice and recommendations has helped investors grow their wealth. 

Sometime in December 2007, the legendary investor Warren Buffet bet a million dollars against a hedge fund manager arguing that a fund holding the same stocks comprising the S&P 500 index (index fund) could beat the combined performance of a group of hedge funds over the following ten years. In a letter sent to shareholders of Berkshire Hathaway in 2018, Buffet revealed the result. He placed the bet with Protégé Partners, which picked five hedge “funds of funds” that aimed to outperform the broad market, as represented by a simple S&P 500 index mutual fund. Those five funds of funds together owned stakes in more than 200 hedge funds, providing a broad sample of money managers with different investment strategies. The final result of the bet, according to Buffett, was heavily tilted towards the index fund. The returns over the 10-year period for the five hedge funds of funds ranged from a mere 0.3 per cent to 6.5 per cent annually and the basket only returned an average of 2.2 per cent. Compare this with the compounded annual return of 7.1 per cent given by the index fund during the same period.