In recent news, the great Warren Buffett himself has been proven wrong in attempts to wager $1 million to charity on betting that he can achieve better investments returns then a team of hedge fund managers through investing in S&P 500 funds for passive index uses. The resulting bet is to be decided this year though Mr. Buffett proves to be ahead of the game. According to Mr. Buffett, there’s too many mediocre and inexpensive funds that are currently shortchanging numerous investors. Although he commits to low-cost, simple investments and long-term solutions, his approach of bottom-up investing has seemed to work for many years. He likes to invest and stay invested.
In a recent shareholder’s letter, he offers wisdom based on his numerous years of experience. CNBC also notes that product labels should be watched out for as is the case in any such industry. Numerous mutual funds offer mediocre or poor long-run returns due to high management fees with excessive trade while volatility risks and costs return.
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Timothy Armour currently serves as Chairman of Capital Group Companies, CEO of Capital Research and Management Company, Inc., and likewise Chairman of the Capital Group Companies Management Committee. He’s also an equities portfolio manager with more than 30 years of investment experience through Capital Group. Years prior, Mr. Tim Armour served as an Equity Investment Analyst for Capital and covered global telecommunications within U.S. service companies. He studied Economics at Middlebury College.
In regards to the Post-Trump market change, Armour comments
“The market has signaled, voted and is running with it. These things are huge and profound, and one has to decide whether you believe it…I think it’s real . . . interest rates have been declining pretty much for my whole career, and my guess is that we’ve seen the bottom.”
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