Warren Buffet has used a different investment strategy to yield better returns; wagering USD 1 million for charity, instead of the usual mediocre and costly funds that shortchange investors. Less expensive and simple investments which should be purchased and held for longer periods are more rewarding. The bottom-up investment approach used by Mr. Buffet has been effective for many years.
Americans need to save more for retirement and invest for their future, but passive index returns are not the safest path to better retirement. Most mutual funds offer a mediocre or poor return in the long run due to excessive trading and high management fees. In addition, one cannot predict the risks and opportunity costs of passive index investments. A wise investor is one who uses investment strategies that will enable him to do better than the crowd in bad times, and low costs are the key to good long-term investment returns.
About Timothy Armour
Timothy Armour, based in Los Angeles, is the Chair and CEO of Capital Group in addition to being an equity portfolio manager. He was named Chair of the company in 2015. Timothy is also the chair of the Capital Research and Management Company, Inc as well as the Capital Group Companies Management Committee. Timothy has a Bachelor’s Degree in Economics from Middlebury College.
Timothy has gained his thirty-four years of investment experience at various positions he has served at Capital Group. He joined Capital Group as an Associates Program participant and slowly climbed the ladder in the organization to the position he holds now.
Learn more about Timothy Armour: https://www.youtube.com/watch?v=-a5Pt_qz36Q