The Masters Disagree on Strategy

One of the investment world’s most prominent figures, Warren Buffett, recently made a wager with a group of hedge fund managers for $1 million. In the wager, Mr. Buffett states that by investing in a simple S&P 500 passive index fund, he could achieve better returns than the group of managers. The winner of the wager will donate the proceeds to the charity of their choosing. As the date that the wager is set to expire draws to a close, Mr. Buffett looks as if he will claim his prize. Warren Buffett’s reputation in the investment community is stellar, making it difficult to oppose his positions on long-term investment with any sense of credence, but that is exactly what Chairman and Chief Executive Officer of Capital Group, Timothy Armour has just gone on record as doing. In Warren Buffett’s own estimation, the market is currently filled with expensive mutual funds that present little opportunity for a proper return on investment, and due to this he has begun publicly championing a simpler strategy. He has achieved the majority of his success by rigorously analyzing the details of each prospective company in hopes of achieving the maximum yield in the long haul; a strategy that Timothy Armour agrees has been tremendously effective in years past. Where Timothy Armour’s opinion first differs is on the validity of the safe passive index fund argument. According to a recent study in which 1200 investors were surveyed, it was revealed that half of those surveyed were unaware that during market downturns, they were exposed to 100 percent volatility of their supposedly safer counterparts. Timothy Armour has gone on to support actively managed mutual funds, suggesting that although traditionally they have been outperformed by passive index funds on a grand scale, in some instances, actively managed funds, most notably the top five current funds, have outperformed passive index funds considerably and more information click here.

Having over 34 years of experience, current Chairman and Chief Executive Officer of Capital Group, Timothy Armour has risen through the ranks to become one of the top executives of the investment world. His resume, After graduating from Middlebury College in 1983, Timothy Armour began his career with Capital Group by joining The Associates Program and learn more about Timothy.

More visit: http://www.reuters.com/article/us-americanfunds-armour-idUSKCN0HY0EN20141009

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