Warren Buffet is one of the richest person on earth, and he believes that he can achieve more by investing in a passive index fund than investing in a hedge fund. For this reason, he was brave enough to dedicate $1 million of his money to charity if he achieved this feat.
Tim Armour, on the other hand, is an experienced financial analyst from the United States and agrees with Warren Buffet. He also agrees with Warren Buffet that it’s better to invest in low cost and simple investments with the secret being holding these investments for a long period. The two financial experts also emphasize the need for conducting due diligence on an investment before committing capital.
Warren Buffet totally disagrees with the notion of mutual funds and says that they are bad investments. This is because they are associated with excessive trading and high management fees. He says that an investor who invested $10,000 40 years ago into the index fund is worth $500,000 today. He then says that this is much better than an investment made in top active funds in America that include The Investment Company of America, The Growth Fund of America and Washington Mutual Investors Fund.
Tim Armour is a top executive from the United States who holds a degree in Economics from Middlebury College. He has been in the finance industry for over 32 years. As of today, Tim Armour acts as the chairman of a company called Capital Group. Other than a spell as a capital analyst, Tim Armour invests heavily in the service industry and telecommunication.
Learn more about Timothy Armour: https://www.ft.com/content/28953b12-dccb-11e6-86ac-f253db7791c6
admin May 1, 2017
Posted In: Investor