I am quoted in a Kiplinger article: “Warren Buffett: Why Index Funds Trump Hedge Funds”
Buffett has long been a critic of excessive fees, notes David Kass, a professor at the University of Maryland’s Robert H. Smith School of Business who studies Buffett and is a Berkshire shareholder.
“Buffett said at a recent Berkshire annual meeting, when he asked a hedge fund manager why he charges ‘2 and 20,’ the response was ‘because I can’t get “3 and 30,” Kass says.
“Warren Buffett has recommended that when he is no longer here, his wife should invest 90% of her money in a low-cost S&P 500 index fund such as that offered by Vanguard. The other 10% would be invested in Treasuries to provide liquidity,” Kass says.