Warren Buffett has a charity wager worth $1 million that his investment returns will be superior to the hedge fund managers. Chances are excellent he is going to collect. He supports a low cost, simple investment expensive fund and analyzes companies as he builds his portfolio. He has shared his experience and wisdom in a shareholder letter.
He warns consumers to watch out for product labeling mutual funds. He believes passive index funds are too volatile and provide no protection when the market takes a downward turn. He wants investors to carefully consider the exceptions in managed funds and uses the example of an investor who placed $10,000 in the very first S&P 500 index fund would have earned half a million dollars. Investments in the top five American funds would have earned considerably more.
Warren Buffett places his faith in two filters, high manager ownership and low expenses. Timothy Armour firms history speaks for itself and has spanned both bad and good markets. Most American individuals have to make their own retirement and find a way to save enough money. According to Mr. Buffett the place to begin is with higher returns.
Timothy Armour is the CEO of the Capital Group and an equity portfolio manager. All 34 years of his experience have acquired with the company. He began as an equity investment analyst covering U.S. service companies and global telecommunications. He was a part of The Associates Program when he first started with the company. He received his Bachelor’s degree in Economics while attending Middlebury College.
Since Donald Trump was elected there have been substantial changes in the market. Timothy Armour believes these changes reflect a huge seismic shift and that they are quite real. He feels the market has voted and signaled and is currently running with the changes. He sees the effect as profound and stated each individual must decide what they want to believe. In an interview he granted with the FT he talked about how he has witnessed the decline of interest rates throughout his entire career and believes we have already seen the bottom.