Tim Armour supports Mr. Buffett’s commitment to low-cost investment and his approach to bottom-up investing. However, there are just a few things that he just doesn’t agree with when it comes to Mr. Buffett’s views.
Active Vs. Passive
The debate between active and passive investments can start a good argument. However, this argument does not serve the investors, but in part explains more about high management fees, excessive trading and poor long term returns.
Tim Armour goes on to state that passive index investments can sometimes be underestimated or unknown which holds them at a volatile risk. Index Investments are not about active or passive investments but more about delivering good long-term investments and keeping the returns at a low cost. It is important to challenge the notion that passive index returns are safe for investors. Index funds has a place in the investment market but they do not provide any cushion against when the market goes down.
Although there have been trillions of dollars that have went into passive investments, only a small percentage of the investors were surveyed, exposing losses during market downturns. Click here to know more.
Tim is currently the chairman of Capital Group Companies and also an equity portfolio manager. He has over 32 years of experience in equity investments and global telecommunications. He started out as a participant in the Associates Program for Capital and has worked his way up.
He has a bachelor’s degree in economics and currently lives in Los Angeles.
Tim works alongside Robert Lovelace and
Philip de Toledo at Capital. Both are very talented in the field of investment banking and combined have over 60 years of experience. Rob has a bachelor’s degree in mineral economics and Philip has an economics degree also that he obtained at the University of California. As a team, they have learned how to successfully run and operate Capital Group Companies with precision.