Warren Buffett Just Won a Million-Dollar Bet
Just a normal, everyday occurrence for the billionaire philanthropist.
Warren Buffett is known for his financial savvy, so much so that he's not only making money off of his own investments, but raking in cash betting that his knowledge of the stock market exceeds that of others. After all, the Oracle of Omaha has been in the game for a while -- the 87-year-old first purchased stock when he was 11 years old.
In 2007, Buffett made a $1 million wager with a hedge fund manager named Ted Seides who works at a firm called Protégé Partners. Buffett bet that a low-cost S&P 500 index fund would fare better than a collection of a Protégé Partners hedge funds, and it seems that he was correct, a couple months ahead of schedule.
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The $1 million hedge fund investment has reportedly only earned $220,000 in 10 years, while Buffett's more frugal investment earned $854,000. Though the bet is technically up at the end of the year, it's not looking great for Seides -- bookmakers are putting his odds of winning at 3 percent.Buffett currently has a net worth hovering around $76.5 billion, so $1 million is something of a drop in a very, very expensive bucket. But true to form, the famously philanthropic billionaire is putting his win toward a good cause: Girls Inc. of Omaha.