In a recent commentary by Tim Armour, Chairman and Chief Executive Officer of Capital Group, in CNBC Investing, he opposes the advice given by Warren Buffet on investing in an S & P 500 passive index fund and offers investors a different perspective. Mr. Tim Armour states that it is not about an active or passive fund but delivering good long-term investment returns with low cost which is the key strategy to those returns. He also states that it is time to challenge the idea of passive index funds as a safe investment vehicle for retirement, as these types of funds provide no safety net in a down market.
What Mr. Armour proposes is to take note of two simple filters with these types of funds, low expenses and higher management ownership. By getting rid of the high-cost funds and finding managers who are investing their own money alongside their investors into the fund, will result in a group of fund managers who have continually outpaced benchmark indexes on the average and learn more about Tim.
Timothy Armour has 34 years of experience as an investor with Capital Group alone and began his career with this company as a participant in the Associate’s program. Tim received his Bachelor’s degree in economics from Middlebury College.
More visit: https://www.linkedin.com/pub/dir/Tim/Armour