In a recent article that was posted to the CNBC website, Timothy Armour discusses the recent strategy Warren Buffett took to outline why his method of investing is better than the method that the top hedge fund managers take.
Warren Buffett bets $1 million that his method would see better return in one year than the competitors. His strategy involved investing in the S&P 500 passive fund index. Mr. Buffett won his bet, but Timothy Armour disagrees that his strategy is the best for the average investor that is planning on soon retiring or is already retired. His reasoning is that the passive index fund can greatly fluctuate and offers no protection for any investments that are made within it. Average people have the potential to lose large sums, which in his opinion is not a practical or safe option for people with limited resources that depend on the returns of their investments to live on after their retirement.
Timothy Armour is currently the CEO of Capital Group. He serves as Chairman of the company, as well as serving as the principal executive offered and Chairman of Capital Research and Management Company. Armour is the Chairman of Capital Group Companies Management Committee. He takes a very hands-on approach to management and still serves the company as an equity portfolio manager.
Tim Armour has spent his entire professional career with Capital Group, which spans a period of over thirty-four years. He was elected to serve Capital Group after his predecessor unexpectedly resigned, and a month later passed away. Tim Armour attended Middlebury College where he received his bachelor’s degree in economics and later entered the Associate’s program at Capital Group.
For more information about Tim Armour, just click here.