Warren Buffett could end up winning $1 million for a charity if a bet he made with Ted Seides of Protege Partners continues to go his way.
The iconic head of Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) bet the Wall Street insider that the stock market’s performance over time would beat stock picks from experts. To put Buffett’s theory to the test, the two men invested money according to their strategies, with the one who made the most after 10 years winning the bet, CNBC notes.
Seides invested in five funds of hedge funds, while Buffett chose an S&P stock index fund. 2008′s financial crisis sent both strategies tumbling, but they have recovered in subsequent years.
Currently, Buffett’s investment choice has generated an 8.69% return, compared to 0.13% on average for Seides hedge funds. It is the first time since the start of the bet that Buffett has eclipsed Seides’ returns.
The bet ends in 2017. The prize money will be donated to a charity designated by the winner.
Earlier this month, a Berkshire Hathaway-owned company acquired two solar power projects from SunPower (NASDAQ:SPWR) for more than $2 billion.