Warren Buffett Won a $1 Million Bet, and It's Helping a Good CauseThe 'Oracle of Omaha' made a wager a decade ago that will finally pay off.
People callWarren Buffettthe "Oracle of Omaha" for a reason.
A decade ago, the investor made abet for a cool $1 millionwith a hedge fund manager that a low-cost S&;P 500 index fund would fare better than a collection of a Protégé Partners hedge funds.
On Friday, the bet was officially sealed in Buffett's favor when the closing bell rang at the New York Stock Exchange. The final tally, according toTheWall Street Journal, saw Buffett's fund have a compounded 7.1 percent annual return, compared to his opponent's 2.2 average return.
Related:24 Surprising Facts About Warren Buffett
Of course, $1 million is just a drop in the bucket for a man with a reported$76.5 billionfortune. The real beneficiary of the wager isGirls Inc. of Omaha,who will use the funds to renovate transitional housing for 16 teen girls who are aging out of the foster system, along with passive investments, as per Buffett's advice, of course.
Better yet, since the Oracle of Omaha's investment went so well, the donation will actually be around $2.2 million.
