American icon and investment guru Warren Buffett has made a $1 million dollar gamble, saying he could make better investment returns than a bunch of hedge fund managers by only investing in a S&P 500 passive index fund. The gamble is supposed to pay off for Warren Buffett this year. Warren Buffett says he will donate the winning to charity. Warren Buffett believes that many expensive funds 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.
Warren Buffett has become vocal when it comes to “bottom-up” investing which reviews companies and works to build a strong portfolio, which has worked for Warren Buffett for many years. Warren Buffett is encouraging Americans to save more as they near retirement and to invest and stay invested. Warren Buffett penned a letter to shareholders, saying 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 and what Tim Armour knows.
Warren Buffett believes in long-term investment returns that are achieved by having low costs. Tim Armour does not support passive index returns being the key to a prosperous retirement. Warren Buffett has found two ways to identify strong investors, and they are low expensive and high manager ownership.
Timothy Armour is currently the chairman and chief executive officer at The Capital Group. Tim Armour also serves as chairman of the Capital Group Management Company. Tim Armour has been with Capital Group for more than 30 years. Tim Armour started out at Capital Group as par of The Associates Program and later became an equity investment analyst at Capital Group, where he covered global telecommunications and American service companies and Tim’s lacrosse camp.
Tim Armour resides in Los Angeles, California. Timothy Armour received a bachelor’s degree in economics at Middlebury College. Timothy Armour has made a number of appearances on CNBC and MSNBC. Armour has been featured in several financial magazines including Bloomberg and the Financial Times. Tim Armour continues to advise people on investing in the market and more information click here.