Warren Buffett did something amazing recently. Mr. Buffett made a huge wager of $1 million dollars that he can get better investment returns than an experienced group of hedge fund managers. Warren Buffett will do this by investing in S&P 500 index funds. The wager will end later in the year and Warren Buffett looks like the winner so far. If Warren Buffett wins, he will give his $1 million in winnings to the charity of his choice.
Warren Buffett thinks that they are too many subpar funds that ultimately shortchange the investors they serve. He believes that simple, low-cost investments are good for investors and should be held for the long term. Warren Buffett calls it bottom-up investing. Bottom-up investing is the approach of building a strong portfolio and analyzing companies. This approach leads to accumulating more money over time. Warren Buffett believes that Americans should invest more and save more for retirement.
Many people are moving away from the belief that passive index funds are the safer alternative for saving for retirement. Passive index funds don’t provide any security when it comes to a down market. Many investors have the unfortunate task of losing their investment in a market downturn.
Timothy Armour is the Chief Executive Officer and Chairman of Capital Group. He also serves as the Principal Executive Officer and Chairman of the Capital Research and Management Company. Timothy Armour is also a part of the Capital Group Companies Management Committee, as the chairman.
Tim Armour has 34 years of experience in investments. For those 34 years, he has only worked with Capital Group. In the beginning of this career, he was an equity investment analyst. He was responsible for global telecommunications and United States service companies. Timothy Armour is based in Los Angeles. He has a bachelor’s degree from Middlebury College, in Economics.
Learn more about Timothy Armour: http://www.barrons.com/articles/best-fund-families-of-2016-1486794270