Timothy Armour is an American Executive officer of the investment company Capital Group. Armour started at Capital 34 years ago. All of Armour’s investment experience is with Capital Group.
Before starting at Capital Group, Armour worked as an investment analyst, as well as covering globe telecommunications. He holds a bachelor’s degree in economics, which he received from Middlebury College. In July of 2015, Tim Armour was named chairman of Capital Group, after the current chairman, James Rothenberg, passed away of a heart attack.
Warren Buffet, an American business magnate, has recently bet 1 million dollars that he can achieve better investment returns that hedge fund managers. He will do this by investing in an S&P 500 passive index fund. So far, it looks as if Warren Buffet is going to win this wager.
Mr. Buffet’s bottom-up approach to investing has seemed to work over many years. In a recent annual shareholder letter, Buffet offered some advice: Be aware of product labels. Partly due to high management fees, poor long-run returns are being provided. But, passive index investment costs are typically unknown, or paid little attention to. This means that business does not rely on active or passive, it relies on good long-term investment returns, and low cost plays a huge role in this.
Many people believe that passive index returns are the only safe way to a stable retirement. However, according to Buffet, index cushions do not help against a downed market.
The last thing Mr. Buffet dressed in his letter was that average actively managed funds have done worse than the market over time. But, unfortunately, there is no way for us to find out which funds are going to perform, and which are not.
Learn more about Tim Armour: https://www.thecapitalgroup.com/us/about.html