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Seides Bets on Private Equity's Edge Over S&P 500

7/10/2025

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Summary

Story summary

Ted Seides made a 10-year bet with Warren Buffett, resulting in a $2 million donation to Girls Inc. of Omaha after Buffett's victory.
Seides has proposed a new bet comparing private equity to the S&P 500, emphasizing the effect of fees on returns.
He identifies leverage, size, and control as key factors affecting private equity performance.
Seides estimates a 40% likelihood of private equity outperforming the S&P 500 after fees and intends to investigate this further.

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Story summary

Ted Seides made a 10-year bet with Warren Buffett, resulting in a $2 million donation to Girls Inc. of Omaha after Buffett's victory.
Seides has proposed a new bet comparing private equity to the S&P 500, emphasizing the effect of fees on returns.
He identifies leverage, size, and control as key factors affecting private equity performance.
Seides estimates a 40% likelihood of private equity outperforming the S&P 500 after fees and intends to investigate this further.