With many people keen on investing for their future, it is important for one to have the knowledge and understanding of what they are getting into to make the right decisions. According to Warren Buffet who is considered by many as one the most successful investors globally, many investors fall for the many mediocre and expensive funds out there that end up shortchanging them.
A much better option which he proposes is low-cost, simple investments that ought to be purchased and held for the long-term. He recently wagered $1,000,000 for charity that he can realize better ROI (Return-on-Investment) as compared to a group of hedge fund managers by just investing in an S&P 500 passive index fund. Though this bet will be decided on later in the year, Mr. Warren Buffet is well on course to winning this one.
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No doubt Mr. Buffet is one of the best investors; with his bottom-up investing proving itself over the years, but one person doesn’t agree entirely with Warren Buffet on his investment strategy – Tim Armour.
On his perspective, Tim Armour notes that it is not all about active or passive, but rather about delivering good long term investment returns- and a key part of those returns is low costs. According to Tim, the notion that passive index returns are the safe path to better retirement needs to be challenged.
Tim Armour is the chairman and CEO of the Capital Group, home of American Funds and one of the largest investment management firms in the world. He was named the chairman back on 28 July, 2015. He also serves as an equity portfolio manager.
Tim has a bachelor’s degree in economics from Middlebury College and has 34 years of investment experience, all with Capital Group where he began his career participating in the Associates Program.
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