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The Million Dollar Active vs Passive Wager

Warren Buffett has a 10-year, $1 million bet with some fund-of-funds managers: he reckons that his investment in Vanguard's S&P 500 index fund will outperform their portfolio of five fund-of-funds. It's a pretty standard active vs passive bet, albeit for uncommonly large stakes; the interesting thing here is that the active side of the bet can be considered to be a fund-of-fund-of-funds, which is pretty crazy, even after accounting for the fact that the top level fund isn't going to charge any management fees.

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