According to the recap of CNBC, Mr. Buffet is a veteran investor that has some wisdom regarding investment perspectives. He understands that many consumers and industries should be wary of the product’s brand. This brings about the debate on active versus passive. The debate does not serve the interest of many investors. Therefore, when seeking for business funds, it is not all about passive or active debate. The issue is based on delivering excellent long-term investment return. Low costs are the key components of the return.
Perhaps, it is the high time to challenge the belief that the returns from the passive index are the safest paths to a better retirement. Index funds will always have their place, but they do not provide any cushion to the falling of markets. Even most of the investors are not aware that index funds can expose them to losses during market depressions.
Also, Mr. Buffet appreciates that there are some investors who are exceptional. He believes that an investor who would have been smart enough to invest $10000 in S&P 500 index funds 40 years ago, by now would have more than one million dollars. However, based on research regarding mutual funds, there are two simple filters, which are high manager ownership and low expenses.
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About Timothy Armour
Mr. Timothy Armour is currently the Chairman and CEO of the Capital Group, which is a capital research and management company. Apart from being the CEO of Capital Group, Timothy is also working as an equity portfolio manager. Tim has more than 34 years of experience in capital investment. Mr. Timothy started his career at Capital Group as one of the participants in the Associates Program. Regarding educational background, Timothy received his Bachelor Degree in Economics from Middlebury College.
As the CEO of Capital Group, Timothy comprehends that the strength of the firm does not lie on individual power but from the collective talents of its associates who believe in the mission of the company. Timothy believes that the management team is looking forward to delivering an 84-year legacy.
Find more details about Timothy Armour: American Funds on Track to Break Even – Timothy Armour