Caller Asks Dave Ramsey ‘Are You Smarter Than Warren Buffett?’ As He Claims Index Funds Outperform Actively Managed Funds by 50%
Dave Ramsey’s live radio show is no stranger to strong opinions, but Chris from Los Angeles took things up a notch. From the very start, Chris didn’t hold back. “You’ve done some great work and in some ways, I love you, but in other ways, you’re stupid and arrogant,” he declared. Ramsey’s co-host Ken Coleman couldn’t help but note, “That’s a great way to start a conversation,” with a sarcastic edge.
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Chris, undeterred, went straight for the jugular. “Are you smarter than Warren Buffett?” he asked, challenging Ramsey’s long-standing advice on actively managed funds. Clearly not in the mood for hypotheticals, Ramsey cut him off: “Let’s stop for a second – what’s the point of your call?”
Chris explained that the point was to call out Ramsey for recommending actively managed mutual funds over index funds. According to Chris, investors could end up with 50% more money at retirement if they stick with low-cost index funds instead of paying higher fees for actively managed ones.
Ramsey wasn’t buying it. “Not sure where you went to school for your math class, but you failed,” he shot back. With decades of experience under his belt, Ramsey insisted that his picks for actively managed funds have consistently outperformed the indexes. “I’ve got socks older than you,” he quipped, doubling down on his claim that, with proper research, it’s possible to find actively managed funds that deliver better returns.
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When Chris mentioned Warren Buffett’s endorsement of index funds, Ramsey pointed out that Buffett himself doesn’t stick solely to passive investing. “He actually has an actively managed portfolio called Berkshire Hathaway,” Ramsey said. “I really don’t have a problem with index funds. You can get rich with index funds – but not 50% richer. That’s complete BS.”
As the call spiraled into a back-and-forth, Ramsey clarified his position: he practices what he preaches. “I’ve been doing this for 30 years and it’s made me a multi-multi-multi-millionaire,” he said. “I invest in the same actively managed growth stock mutual funds I tell people to use.”
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