Perhaps it is time for a nation-wide lesson on the basics of smart investing. According to Warren Buffet, hedge fund managers in the US market need a refreshers course. That could be the reason behind his wager to out-invest a group of leading contemporaries in the field of finance. To these circumstances, Timothy Armour says yes and no.
The yes that Timothy Armour has is twofold. He says yes to Buffet most likely winning his bet. And, he says yes to the old and faithful traditional methods for returning gains from investments. The first step in these methods is to thoroughly, if not compulsively, analyze and research any company that might be considered for investment. This is called bottom up investing. The following action required for sound and steady investing is to buy at low prices and hold on to company shares as long as reasonably and humanly possible. This is known as staying invested. These methods work and resume him.
Things get a little more complicated when it comes to the no part of Armour’s response. As a precursor, he says that the labels active or passive and the pick-a-side mentally in the industry is little more than politics. They serve no real purpose. He likes to see results. As a professional, he tends to lack faith in the passive index approach but does not have any aversion to it in particular. It is just that in the past the track record of this approach does not exactly shine. For example, he points to the fact that the top five active funds from American Funds outperformed the S&P in the past decades and learn more about Timothy.
Timothy Armour knows about these gems and gold minds of investment companies first hand, from his experience with Capital Group. His foundation and professional relationship with Capital Group is rock solid. This company is all he knows from the working world. That level of commitment brings with it an authoritative and trustworthy knowledge of industry. Presently, he is chairman of Capital Group Companies as well as chairman and principal executive officer of Capital Research and Management Company Inc. He is also chairman of the Capital Group Companies Management Committee and more information click here.
Other Reference: https://angel.co/timothy-armour