Timothy Armour And His Investment Journey

Timothy Armour is the chief executive officer at the Capital Group. He offers his insight into the investment strategy by Warren Buffet in an article posted on www.cnbc.com. Tim says that Warren Buffett had invested $1 million in charity which he could have acquired better investment returns in a passive index fund of S&P 500.

Warren Buffet states that many expensive and mediocre funds regularly shortchange investors. The approach of bottom-up investing by Buffet has proven itself for many years. This involves creating a strong portfolio and analyzing companies. Timothy Armour adds that Buffet has done a great job of sensitizing Americans on the need to save more when it comes to retirement.

Timothy Armour says that the reason why the majority of mutual funds offer mediocre returns is due to excessive trading and high management fees. He adds that passive index opportunity costs and volatility risks of investments are usually unknown or underestimated. Timothy Armour serves as the chairman and also the CEO of the Capital Group. He is also the principal executive officer and chairman of Capital Research and Management Company. It is part of Capital Group. Tim also serves as the Chairman of the management committee of the Capital Group Companies. Timothy has worked in the investment industry for 34 years. Tim has acquired a lot of experience and skills. Tim began his career journey by working as an equity investment analyst at the Capital Group. He studied at the Middlebury College where he managed to get a Bachelor’s degree in Economics.

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