When it comes to investment, Warren Buffett puts his money where his mouth is, quite literally. The guy invested $1 million dollars in an S&P passive index fund – a charity fund, for a better return. He is set to know the outcome this year and the way things are going, he’ll likely reap large profits.
Buffett’s secret to success is minimizing cost. Mutual funds offer mediocre, poor returns due to the high management costs of running them. However, Buffett agrees that there is an exception to this. For example, if two people invested $10,000 each, 40 years ago, one in the S&P fund and the other in the five best active funds, the latter would get more money today.
Ultimately, it is not about passive or active funds. What’s important is the ability to receive long-term returns from an investment option, and Tim Armour agrees with Buffett on this.
Soon after graduating from Middlebury College, Tim began his career at the Capital Group Companies in the associate program. After rising through the ranks, he has assumed the chairmanship of the company, after the death of its chairman – Jim Rothenberg.
If you look at the strategic partnership between his company and the Samsung asset man agent that he helped form, Tim comes out as very strategic. He wants to achieve a better solution to Korean investors by supervising the resources through all market cycles and see them get a better savings and retirements plan.
In short, Tim’s leadership of America’s oldest asset management company is a success story. The company is growing and flourishing more than ever before. Tim is clearly the real deal.
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