Warren Buffet is considering a low cost and simple investment strategy other than hedge fund managers. In early 207, he risked $1 million for charity by simple investment in an S&P 500 passive index fund. Although the bet seems risky, it is likely that Buffet will win it. Over the last couple of years, Buffet has been investing in bottom-up investment plans, which has proved to be successful. His message has been consistent that Americans should save more towards their retirement.
Recently, Warren Buffett shared some knowledge on investment. Having invested for several decades, he has a wealth of experience in mutual funds. A significant number of mutual funds offer poor long-run returns. He argues that these types of mutual funds are high risks and opportunity costs, which are always underestimated. He also urges people to think of a better retirement plan and not just the passive index returns. These types of plans don’t offer cushion the client against down markets. Buffet advises American to invest in S&P 500 index fund for this is beneficial.
Tim Armour in Brief
Tim is the CEO and chairman of Capital Group. He is also the chairman and principal executive officer of Capital Research and Management Companies. Tim joined Capital Group in 1983 when he began as a participant in The Associates Program. Tim was promoted to become the chairman and CEO of Capital Group in 2015, after the death of James Rothenberg, his predecessor. Previously, he served as an Equity Investment Analyst.
According to Tim, the victory of Donald Trump caused changes in asset prices. Since the election, equities have struggled to stabilize. Tim envisions that the markets may remain unstable for some time considering that the uncertain policies that the Trump administration may make.
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