There’s been a lot of discussion about whether Warren Buffett was right about the majority of investments nowadays. There’s an endless amount of financial professionals giving their opinion on this matter. One of the most respected professionals offering his side of the story is Timothy D. Armour.
Tim Armour is the newly named Chairman and CEO of Capital Group. He has 34 years of experience at Capital Group, dealing with investments of all kinds. He’s proven time and time again that his expertise is just as good as someone’s who’s been in the same industry for twice as long.
Shortly after earning his Bachelor’s degree from Middlebury College, he was accepted into Capital Group’s Associates Program. He’s been working at Capital Group ever since. He worked his way up their corporate ladder in a very knowledge-consuming manner. All of his expertise was learned from first-hand experiences and directly from more experienced mentors.
Armour’s opinion on Warren Buffett’s wager is getting almost as much attention as the wager itself. Last year, Warren Buffett bet $1 million, which he would donate to charity, that he could achieve better investment returns than any group of hedge fund managers. The hedge fund managers would do their usual work of chasing stocks, and Buffett would invest in an S&P 500 passive index fund. Based on current data, it looks like Buffett going to when the wager.
According to Mr. Armour, Warren Buffett’s market strategy is correct. Often, hedge fund managers get shortchanged by numerous mediocre and expensive funds. Many experienced professionals believe that it’s better to buy at a low cost and hold onto it for the long term. That doesn’t mean that passive index funds are the safest bet.