Timothy Armour’s Advice to Investors
Mr. Armour attended Middlebury College for his Bachelor’s Degree in Economics. In 1983, he started working at The Capital Group Companies, Inc. as a member of the associates program. He was elevated to the post of Equity Investment Analyst at the company. His work involved working with global telecommunications and American service firms. He is now the chairman, director, and principal executive officer at the company.
On July 28, 2015, Capital Group’s Board of Directors reported about the election of Armor as the president of the company. Armour succeeded the former chairman, the late Jim Rothenberg. According to Jim, some of the market leaders have been misleading investors. Recently, Jim responded to a claim made by Warren Buffet.
Tim Armour, critically looks at the assertion by Warren Buffett that investment in S&P 500 passive index fund is more profitable than in a group of hedge fund managers. Armour believes that this year, Buffett is going to collect.
Armour agrees that many funds deceive investors. He supports investment in low cost and simple venture for a long time. There is a need for Americans to save and remain invested. Here are Armour’s views on Mr. Buffett’s investment strategy and his Linkedin.
Consumers should not be wary of whether the investment is “active or passive.” Many mutual funds fail to make profits because of high management cost and over-trading. Passive index returns are not necessarily the best ones for retirement. They are also exposed to down markets, something more than half of the investors does not know and learn more about Timothy.
Some actively managed funds have outperformed the market over an extended period. Mr. Armour notes that an investment of $10,000 in the best S&P 500 index fund four decades ago is now worth over half a million dollars, which is less than a similar investment in the top five American Funds 40 years ago. He says this is influenced by outperforming the market average in the long run and more information click here.
His advice to investment fund managers is that they must always strive for the betterment of their client.