Thus far 2017 has been a very good year for Warren Buffett, not only are all of his stocks outperforming as always but Berkshire Hathaway has a $116 Billion War Chest and it is actively looking for acquisitions per Warren Buffett. Another reason 2017 was a good year for Warren Buffett was that he won a $1 Million bet, yes that is right $1 Million dollars in real money. But I thought Warren Buffett doesn’t believe in gambling you say? Well, in 2007 he bet $1 Million against a hedge fund stating that his index fund choice would outperform the hedge fund over the next ten years.
In December 2017 Warren Buffett won his bet, and the really special thing is that the entire $1 Million wager went to charity. Warren Buffett donated the money to his local Girls Inc. affiliate. Girls Inc. is a place where teenage girls can get counseling services, tutoring, and a bevy of other services that help the community. Warren Buffett has donated money to them before, and obviously, a donation of this magnitude will help the organization to make much-needed improvements to their program and help the teenage girls that are currently enrolled in the program.
Warren Buffett has set the bar for donating a good amount of money, and he is part of the giving pledge with Bill Gates and a host of other billionaires who has pledged to give away a good portion of their wealth after their demise. Warren Buffett has historically been a fan of index funds as opposed to other investment vehicles, although he still stands behind stocks at the most reliable vehicle to invest your money into. The recent winning wager by Warren Buffett just goes to show his commitment to the giving pledge and the fact that he is making donating his billions entertaining as well.