Warren Buffett has criticised hedge fund and fund of fund managers, claiming they underperform what investors could get "sitting on [their] rear end" in an index fund.
According to Bloomberg, the CEO of Berkshire Hathaway told shareholders at the company's annual meeting the funds"eat up capital like crazy". Buffett (pictured) said salesmanship has masked poor returns for years, with consultants steering investors towards high-fee managers who underperform index funds. M&G's Willcocks - It's active 'and' passive, not 'versus' He said: "Supposedly sophisticated people, generally richer people, hire consultants. And no consultant in the world is going to tell you, ‘just buy an S&P index fund and sit for the next 50 years.' "You do not get to be ...
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