Warren Buffet has made a bet of one million declaring that he can achieve a better investment return than a group of managers of a hedge fund. His theory is that he can simply exploit an S&P 500 passive index fund. Warren is correct in his theory because it is shown time and time again that too many expensive funds have shortchanged investors.
Tim states that he supports some of the things said by Warren Buffett, He supports the commitment to low-cost investments and acknowledges that Buffet’s approach of bottom-up investing works. Today mutual funds are not offering the benefits like before; they provide a mediocre return with a high management fee. However, Tim can not agree with all of Buffets beliefs in the investment field.
Tim is an investor with years of experience. He feels that Buffets views can be a bit shortsighted and claims that it is not about if the funds follow an index, but whether the resources are being managed accordingly and how high their expenses are. The downfall of a fund is not in its investments, but usually in the high expenses. Tim Armour says that investors should actively move their funds towards a high management ownership with low expenses.
Tim Armour went to Middlebury College where he learned Economics. He is currently living in Los Angeles and works at Capital Group. He has an extensive background in global telecommunications and a few years ago gained the title of Chairman. Tim is someone who has a lot of experience in helping others. He has explained that Buffets approach of investing is useful. However, Armour believes that it is about delivering long-term investments and not passive or active index returns.
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