Warren Buffet has vowed to give $1 million to charity in his S&P 500 passive index fund investment bet against a group of hedge fund managers. The bet, which will be decided this year, has received its fair share of criticism. On his article, published on CNBC, Tim asserted that Warren’s strategy was good. He explained that most people invest in expensive funds. In the end, these investments turn out to be mediocre, as investors do not make huge returns. Warren opted to invest in simple low cost passive investment. This is because he has extensive experience of making better investment returns from the bottom-up investing approach.
Tim warned investors to be careful about passive and active investment. He explained that it is difficult to tell which funds will perform better since they all pose diverse challenges such as excessive trading, high management fees and unknown volatility risks. Tim asserted that the smartest way of investing is targeting low cost investments that deliver better long-term returns.
Tim Armour is a portfolio manager and the chairman of Capital Group of Companies. He is also the principal executive officer of the company’s division, Capital Research Management. In addition, Tim serves as the chairperson of the Capital Group’s management committee. He has had a successful career as a portfolio manager. Tim has broad experience in investment considering that he has rendered his services in the industry for over three decades. Earlier in his career at Capital Group, Tim participated in the Associates Program. Later, he served as an equity investment analyst.
Armour pursued his bachelor’s degree in Economics at Middlebury College. Recently, he shared insights on the global investment themes to watch in 2017. Tim urged people to pay attention to interest rates considering that the Federal Reserve increased these rates for the second time in a year. Moreover, Tim talked about digitization and automation besides warning of the possibility of an inflation after elections.
Learn more about Timothy Armour: http://www.pionline.com/article/20151014/ONLINE/151019956/capital-group-samsung-asset-management-form-strategic-partnership-in-korea