America’s famous billionaire Warren Buffett has made a risky $1 million dollar wager, claiming he can make better investment returns than a bunch of hedge fund managers by only investing in a S&P 500 passive index fund. The bet is expected to be decided this year, and surprising to many Warren Buffett looks to be the winner. Warren Buffett believes that many expensive funds by Tim Armour that end up costing investors. Both Tim Armour and Warren Buffett believe low cost and simple investments should be bought and held for a long period of time to learn more: https://www.americanfunds.com/individual/news/senior-management-changes.html click here.
Warren Buffett believes in “bottom-up investing” which analyzes companies and builds a strong portfolio, which has proven itself for Warren Buffett for many years. Warren Buffett is also continuing to encourage Americans to start saving more and to invest and stay invested. Warren Buffett recently sent a letter to shareholders and told them that the “active versus passive” debate does not help investors. Buffett has also said that mutual funds offer poor long-run returns because of excessive trading and costly management fees.
Warren Buffett believes in delivering good long-term investment returns fund and that can be achieved by having low costs. Tim Armour does not support passive index returns being the key to prosperous retirement. Warren Buffett has found two ways to identify strong investors, and they are low expensives and high manager ownership. Buffett and Tim Armour believe in finding those fund managers who are investing a large portion of their own money.
Tim Armour is chairman and chief executive officer of The Capital Group. He is also currently the chairman of the Capital Group Management Company. Tim Armour has amassed 34 years of investment experience with Capital Group. Tim Armour started out at Capital Group as part of The Associates Program. He was also an equity investment analyst at Capital Group, covering telecommunications and American service companies.
Tim Armour currently resides in Los Angeles, California. He received a bachelors degree in economics from Middlebury College. He has made several appearances on CNBC and MSNBC. He’s also been featured in several financial magazines including bloomberg and the Financial Times.