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Buffett's Million-Dollar Bet
- Warren Buffett bet a million dollars that a simple investment would outperform hedge funds.
- This bet highlighted his skepticism towards high fees and complex investment strategies.
The Origin of Index Funds
- John Bogle, founder of Vanguard, created the first index fund in 1976.
- This was inspired by economist Paul Samuelson's findings that professional investors rarely beat the market.
Lower Fees with Index Funds
- Index funds have lower fees than actively managed funds.
- This is because they don't require costly stock picking and research.