Warren Buffett is wagering one million dollars for charity. He feels he can get better investment returns than a team of hedge fund manager by placing his investments in a passive index fund. The decision on the bet will be this year and it looks like Mr. Buffett will win.
There are a lot of funds that are both expensive and mediocre and end up short changing investors. Mr. Buffett builds a durable portfolio by analyzing companies and has proven his methods over decades. He has offered wisdom in his annual letter to shareholders.
Mt. Buffett cautions consumers to be careful regarding product labels. This concerns the debate over passive versus active investments. He feels passive investments are volatile, unknown and not the way to a better retirement. He says there are two filters, high manager ownership and low expenses. The key is finding the fund managers who invest with their investors. These managers have consistently done better than benchmark indexes.
Timothy Armour is currently the chairman of Capital Group. In addition he holds the position of principal executive officer and chairman for Capital Research which is a part of the Capital Group. Mr. Armour is also the chairman for the Management Committee for the Capital Group as well as a portfolio manager in equity.
Mr. Armour has been with the Capital Group for 32 years and this is where he earned all of his experience in the field of investing. He started his career working for Capital as an equity investment analyst. His responsibilities at this time included United States service companies and global telecommunications. He participated in the Associates Program when he first joined the company. Mr. Armour attended Middlebury College where he earned his bachelor’s degree in economics. Currently he is based out of Los Angeles, California.