Buffett Asks Big Money: Why Pay High Fees? – The New York Times

““Much of the financial damage befell pension funds for public employees,” he wrote. “Many of these funds are woefully underfunded, in part because they have suffered a double whammy: poor investment performance accompanied by huge fees. The resulting shortfalls in their assets will for decades have to be made up by local taxpayers.”

For the past several years, Mr. Buffett has told anyone who will listen to avoid attempting to beat the stock market by investing in hedge funds or actively managed funds. Instead, he has counseled buying a low-cost S. & P. 500 index fund. (He has said he plans to advise the trustee of his estate after he dies to invest 90 percent of it in an S. & P. 500 index fund and the rest into government bonds on behalf of his wife.)

However, much of the biggest money in the nation hasn’t taken his advice and continues to pay enormous fees for underperformance.”