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Lindley Estes is a business writer for The Free Lance-Star and This blog is on Fredericksburg-area business. Send an e-mail to Lindley Estes.

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Buffett puts his money where his mouth is

Warren Buffett has long been a critic of high-fee money managers, whom he claims aren’t likely to beat a low-fee stock market index fund over time. Now Buffett has put his money where his mouth is. Buffett and Protégé Partners LLC, a New York City money management firm, have each put up $320,000. Buffett is betting that the returns from a low-cost index fund will beat the results of the five funds that Protégé has selected. The $640,000 was used to buy a zero-coupon Treasury bond that will be worth $1 million at the bet’s conclusion in 10 years. That $1 million will then go to charity. The bet was reported by Carol J. Loomis of Fortune magazine, a longtime friend of Buffett. Read the article here.

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