American investment and financial wizard Warren Buffett made a $1 million gamble, claiming he can make better investment returns than a number of hedge fund managers by simply investing in a passive index fund. The bet will be settled this year and Warren Buffett is expected to win and will give the winnings to charity and more information click here.
Warren Buffett attributes his success to making cheap, smart and simple investments that are bought and held for a long time. Warren Buffett has been a strong advocate of “bottom-up” investing, which researches companies and builds a durable portfolio. Warren Buffett has become vocal about Americans saving even more for retirement and to begin investing and stay invested. Warren Buffett has found a simple way to filter out the weak fund managers from the strong fund managers and that is to find those with low expenses and high manager ownership.
Warren Buffett recently penned a letter to his shareholders where he tossed out the “active versus passive” debate, saying it does not help investors in the long-term. However, Capital Group CEO Timothy Armour disagrees and says mutual funds only result in poor returns because of high management costs and excessive trading. Tim Armour believes “active versus passive” investing has nothing to do with delivering positive investment returns.
Tim Armour is the current chairman and chief executive officer of The Capital Group and is the chairman of the Capital Research and Management Company. Throughout his time at Capital Group, Tim Armour has gained more than three decades of investment experience. He was previously an equity investment analyst for Capital Group, where he was responsible for covering world-wide telecommunications and U.S. service companies and learn more about Tim.
Tim Armour originally started his time at The Capital Group as a member of the Associates Program. Tim Armour was appointed chairman of Capital Group in 2015. As chairman Tim Armour has been focused on continuing to build on the successes of The Capital Group. Tim Armour was appointed chairman following the death of Jim Rothenberg, who was the chairman at the time of his death. Tim Armour has been the focal point of several articles in financial magazines and Tim’s lacrosse camp.