Girls Incorporated of Omaha will receive about $2.2 million from a 2007 wager Warren Buffett made with Protégé Partners. Girls Inc. Executive Director Roberta Wilhelm tells NewsRadio 1110 KFAB about ten years ago Buffett told her that he was engaging in this bet that would last ten years. She says the organization was also betting on Buffett to win on behalf of Girls Inc. and the girls that they serve.
The bet went through the organization Long Bets in the form of $320,000 bonds from each party, which would grow to $1 million over the ten years. In 2007, Buffett bet the $1 million that an S&P 500 index fund would outperform hedge funds selected by Protégé. In 2012 the parties agreed to instead invest the stakes in shares of Class B Berkshire Hathaway. Appreciation of those shares resulted in an estimated payday for the charity of $2.2 million.
Girls Inc. will put that payoff to good use. Wilhelm says, "We are renovating a home and converting it into space where young women aging out of foster care or other girls who have a need for transitional housing and some structure and adult support as they transition from high school into adulthood. These young women would have their own room and restroom but there would be common areas like a kitchen and recreation, TV room, computer room and study area. There would be programs offered in things like job training, economic literacy, how to make a good choice when buying a car, healthcare access or how to navigate a bus system." That home should open in 2019.
Wilhelm says Girls Inc. is also following Buffett's example and will invest some of his winnings in passive index funds.
On Friday, February 16th, Buffett will participate in a ceremony that will transfer those funds as part of Girls Inc.'s annual meeting.