Part 3/9:
Felix also highlights how Buffett himself advocates for index funds for investors looking to outperform most active managers. He recalls Buffett's 2007 wager against a hedge fund manager, where Buffett bet that a million-dollar investment in an index fund would outdo the majority of actively managed funds over ten years. This assertion stands as a testament to Buffett's belief in passive investing. Notably, Buffett has even structured his wife's trust with a significant allocation to low-cost S&P 500 index funds.