The Invisible Hand

Warren Buffett's $100B Fund Beats ESG Investing: Here's the Math

Published: September 10, 2026

Duration: 14:29

Think your "ethical" investments are making you money? Emma Reid breaks down the brutal math behind ESG funds and explains why Warren Buffett's simple approach has crushed socially responsible investing by billions. The numbers don't lie: over the past 15 years, the average ESG fund has underperformed basic index funds by about 0.5% annually. That might not sound like much, but on a $100,000 investment, you're looking at roughly $8,000 less in your pocket after a decade. 🎯 What You'll Learn: • Why restricting your investment universe mathematically reduces your returns • The exact performance gap between ESG funds and broad market indexes over 15 years • How some of the be...