Warren Buffett formally wins his wager that the S&P 500 index fund would beat chosen hedge funds over the past 10 years. Fortune reported:

In 2007, Warren Buffett wager 1,000,000 {dollars} that an index fund would outperform a group of hedge funds over the course of 10 years. This week he gained that wager, however the large winner within the wager is a charity known as Ladies Inc.

When he positioned the wager a decade in the past Buffett mentioned he would hand over any proceeds from the victory to charity. The charity he selected was his native Ladies Inc. affiliate, The Wall Avenue Journal experiences. The charity offers after-school care in addition to summer time applications for ladies ages 5 to 18.

Buffett formally “gained” the wager on Friday, however mentioned all through 2017 that he was assured that he would win. Over the course of the wager the S&P 500 index fund returned 7.1% compounded yearly, considerably greater than the basket of funds chosen by an asset supervisor at Protégé Companions. That basket solely returned a mean of two.2%.