Amidst laughter, the best investor who ever lived made a bet and then money.

That bet has become a perpetually asked question: what is the view of the fund managers?

If the stock pickers can’t beat an index, why don’t we all follow the index and strip these guys of their ridiculous salaries, their Mauritius home, and all the rest. again?

Our analysis today by Alan Miller, viewed on the web, is shocking. It’s not just funds in almost every sector, from North America, to smaller Japanese companies to the UK, that have been losing money since Christmas.

(You would normally expect at least a few guys to have called it right.)

That is, they are all well below their benchmarks. So wherever you’ve chosen to invest, you’d be better off just tracking that index than paying a stock picker to try and be clever.

We pick Terry Smith and Nick Train today, as they are the best known – both of which are sometimes described as our best answers to Buffett.

Maybe a couple of them, who have a stellar long-term track record, will turn things around (Train is under more pressure than Smith – I’m an investor in FundSmith.)

And we hope they do, the future of so many depends on it

For broader trading, these numbers make for an uncomfortable reading. They are short term.

That doesn’t hide the fact that in the long run, most City funds are a bad bet. Ask Warren Buffett.


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