Last week, I wrote about my $25,000 bet against famed investor Warren Buffett.
You may recall that I placed a bet with St. Louis-based money manager David Rolfe that a low-cost U.S. small-cap index fund like Vanguard Russell 2000 Index ETF (VTWO) would outperform Warren Buffett’s Berkshire Hathaway (BRK-B) over the next decade.
That’s also why I recently recommended VTWO to subscribers of my monthly Alpha Investor Letter.
On its face, it may seem like that it would be a rare investment strategy that could outperform the â??Oracle of Omaha.â?ť
I believe that, because of its size, Berkshire has morphed into a surrogate for the S&P 500.
If you invest in Berkshire — as I do for myself and on behalf of my clients and Global Guru Capital — you can expect to generate S&P 500-like returns.
Berkshire does have one big advantage.
With a â??betaâ?ť of 0.57, you’ll generate these returns with lower volatility than the S&P 500 itself.
Nevertheless, just as I think there is more than one way to skin a cat, there’s more than just one way — like investing in U.S. small caps through VTWO — you can â??beat Buffett.â?ť
Read more about these Buffett-beating strategies at Eagle Daily Investor.