Yes. The S&P can go nowhere but up, and hedge funds short-term investment strategies can't match the yield of long-term, un-leveraged investments in a booming economy.

I hope he's still around to see his winnings at the end of the 10 year bet. Following the "hedge funds are as good or bad as the folks that are operating them..." principle and assuming that hedge managers are no better or worse than others - one would have to assume that over time the difference between index and hedge funds will be a wash.

I don't see Warren Buffett as "betting" in the sense of 'gambling' on much of anything. He knows tons more than the rest of us about things financial, and/or his crystal ball is tuned into a better source of information.. If he says it's "likely", which is why he took the position he did in this 'bet', I'll bet on Warren. Any takers?

I sure would not want to be the person beting againsted Warren.A million Dollars is chump change to him,But he is rarely if ever wrong that i have seen.