"Both large and small investors should stick with low-cost index funds," he added. On Saturday, he called Vanguard Group founder Jack Bogle "a hero" for his early efforts to popularize index funds. Yet Buffett said most stock investors are better off with low-cost index funds than paying higher fees to managers who often underperform. The index fund is up 85.4 per cent, Buffett said, while the hedge fund groups are up between 2.9 per cent and 62.8 per cent. Passive index funds and exchange-traded funds, meanwhile, attracted nearly $506 billion of new money.

Source: CBC News February 27, 2017 16:03 UTC