Billionaire philanthropist Warren Buffet believes that placing money in passive index funds is a better investment than putting it into the hands of hedge fund managers. To the point that Buffet bet a cool million that would go to charity if he wins. Capital Group’s CEO, Timothy Armour, thinks that Buffet may win the bet, since it cannot be denied that some investors are left with the short end of the stick, as funds prove to be costly. Armour shares Buffet’s concern that retirement funds must yield better returns, not only for Baby Boomers, but even for younger generations and read full article.
But Armour disagrees with Buffet that passive index returns are the best investment for retirement. Some funds have been very high performing indeed, and if an investor placed funds into well-managed active funds, they would end up with better returns than if they’d invested in passive index funds. Armour believes that finding exceptional fund managers is key.
Timothy Armour knows what he’s talking about. A graduate of Middlebury College with a degree in economics and having more than 30 years of expertise in this field, Armour was named Chairman of Capital Group on July 28, 2015. Capital Group is home to American Funds and is one of the biggest fund managers in the world and Timothy on Facebook.
Armour was instrumental in forging the partnership between Capital Group and Samsung Asset Management, whose chief goals are better solutions for retirement and the development of asset allocation products and Timothy’s lacrosse camp.