American investment icon Warren Buffett 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. Warren Buffett is expected to be declared the winner, after the wager is settled this year. Warren Buffett has said the winnings will go to charity. Warren Buffett believes that many expensive funds that end up costing investors. Tim Armour and Warren Buffett believe low cost and simple investments should be bought and held for a long period of time.
Warren Buffett has succeeded when it comes to “bottom-up” investing, which reviews companies and builds a durable portfolio, which has proven itself for Warren Buffett for many years. Warren Buffett is also continuing to encourage people to start saving and invest and to stay invested. Warren Buffett sent a letter to shareholders this year saying the 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 expensive management fees and resume him.
Buffett believes good lengthy investment returns can be made by having low costs. Tim Armour has been vocal about passive index returns, saying they are not the key to a prosperous retirement. Warren Buffett has also found a way to filter out the poor fund managers from the strong managers, and they are low expenses and high management ownership. Buffett and Tim Armour believe in finding those fund managers who are investing a large portion of their own money and learn more about Timothy.
Timothy Armour serves as chairman and chief executive officer of The Capital Group. He is also currently the chairman of the Capital Group Management Company. Tim Armour has accrued more than 34 years of investment experience with The Capital Group. Tm Armour started out as part of The Associates Program and alter became an equity investment analyst at Capital Group, where he covered global telecommunications and American service companies and more information click here.
Tim Armour currently lives in Los Angeles, California. He earned his bachelor’s degree in economics from Middlebury College. He is featured in many financial magazines and has appeared on television and learn more about Timothy.