Buffett Says Money Spent on Plumbers Better Than on Hedge Funds
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Dentists, plumbers add more value in aggregate, CEO says
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Billionaire advocates index strategy for most investors
Warren Buffett isn’t done criticizing hedge-fund managers for wasting clients’ money.
At the annual meeting of his Berkshire Hathaway Inc. he again pressed the argument that, in aggregate, investment professionals aren’t worth their fees — and that people would be better off sticking their money in a low-cost index fund. He also challenged how hedge fund managers are paid.
“If you go to a dentist, if you hire a plumber, in all the professions, there is value added by the professionals as a group compared to doing it yourself or just randomly picking laymen,” Buffett, 86, said. “In the investment world it isn’t true. The active group, the people that are professionals in aggregate, are not, cannot, do better than the aggregate of the people who just sit tight.”…
Buffett Says Money Spent on Plumbers Better Than on Hedge Funds
