Timothy Armour wrote an article on Warren Buffett’s investment strategy that appeared on CNBC. Warren Buffett said that he would achieve better returns than hedge fund managers by investing in a passive index fund. He stated that he would give $1 million to charity if he lost. Warren is winning at the moment, but Armour had a few comments that would shed more light.
Timothy Armour agreed with Buffett’s idea that simple investments would eventually yield huge returns in the long term. He said that the argument about the active funds against passive funds is not appropriate for various reasons. Mutual funds have low returns because of excessive trading and the high fees. It is important to note that index funds perform poorly when markets tumble. They do not protect investors in these instances, and so they are not safe paths.
Tim offered two possible solutions for people who were looking for fund managers. He advised investors to look for funds that charge lower fees. This will ensure that a high portion of the returns goes to the investor. Armour also explained that they should seek funds where the managers have a high sense of ownership. The managers should invest alongside the investors and put their money on the line and what Timothy knows.
Timothy Armour is the chief executive officer and chairman of Capital Group. He is also the chairman of the Capital Group Companies Management Committee and Capital Research and Management Company. Armour is based in the Los Angeles office of the firm where he serves as an equity portfolio manager. He studied at Middlebury College before joining the firm as an associate. Tim was appointed the chairman of the company in July 2015. The position had been left vacant after the death of Jim Rothenstein and Timothy’s lacrosse camp.
Armour said that the performance of the markets was promising because of economic growth. He explained that the shift was real though the election of Trump had a part to play. He pointed out that interest rates had been declining and were now starting to rise. This showed that the economy was recovering and more people were experiencing stability and more information click here.