Warren Buffett put up $1 million for charity to get enhanced investment returns than some hedge fund managers. The investment is an S&P 500 passive index fund and the bet will be decided this year. In a recent annual shareholder letter, Mr. Buffett imparted his thoughts on investing.
Timothy Armour weighed in and agreed that too many run of the mill and expensive funds that aren’t to the investors benefit. He said Americans need to save more for retirement, investing and staying invested. Consumers should be cautious of product labels since mutual funds have an average or poor returns in the long run. Though, volatility risks and costs of passive index investments are either underrated or unidentified. Armour said it isn’t about passive or active; it’s about the excellent long-term return with a low cost. He said it isn’t possible to know what investments will perform. After exhaustive research of thousands of mutual funds for decades Armour said he found two ways to filter them. It starts with a low expense, but high manager ownership with fund managers that invest a lot of their own money. Then it will result in a group of managers that are constant in outpacing benchmark indexes. He says there is nothing random in doing better than the market average and more information click here.
Timothy Armour the now chairman of Capital Group companies and executive officer of Capital Research and Management Company Inc. earned a bachelor’s degree from Middlebury College in economics. He began his career at Capital as a participant in the Associates Program in 1983. Where earlier he was an equity investment analyst for the company and covered global telecommunications and U.S. service companies and Armour on Facebook.
Armour has 34 years of investment experience and is based in Los Angeles. In 1994 he became the senior vice president at The American Funds. He commented on the market and the presidential election in an interview. Armour said some asset managers are still doubtful if the election of Mr. Trump will honestly end the “new normal” that was the sluggish economic growth. He believes this is real, he said that the bottom has been seen and has signaled it’s big and real and learn more about Timothy.
More visit: https://medium.com/@timarmour