This was a bet made a few years back that the S&P 500 index would outperform a fund of funds.  Buffett’s premise of course was that due to the excessive fees charged by the fund of funds, over time it is very likely the S&P 500 which is very low in cost would outperform.  It is essential to understand what you are investing in and what fees are involved.  There are a lot of schemes in the investment world with high fees that you can pretty much guarantee won’t be successful over a period of time, primarily due to the fees, that are sold to unsuspecting clients on a daily basis by cunning salesmen.  The question you should ask your investment professional is “What are you doing with your money, or your family’s money?”

http://www.bloomberg.com/news/2012-03-21/buffett-seizes-lead-in-bet-on-stocks-beating-hedge-funds.html

INVESTING IN THE FINANCIAL MARKETS INVOLVES RISKS. OPTIONS ARE NOT SUITABLE FOR ALL INVESTORS.