Timothy Armour, the CEO of Capital Group, believes that Warren Buffet is wrong about his anti-mutual Fund stance. Mr. Buffett made the claim that most mutual funds are low quality and investors are better off in the S&P 500 passive index fund.
Warren would rather evaluate companies himself and determine if they have bright futures. He is so confident ability of investment, that he wagered $1 million towards charity if this year’s investments do not pan out.
To the contrary, Timothy Armour believes that the active investing and management of mutual funds will maximize profits. It may be true that some mutual funds take too much of a cut in management fees, but the best mutual funds on the market are yielding much higher ROI. When one shops for a mutual fund, low fees, and long term strategies are what should be sought after. It can also be criticized that S&P 500 passive index fund will not have much of an effect when the market takes a nose dive.
He further adds that the market is shifting and cannot be predictable now that the Baby Boomers are retiring. In order for Millenials to start thinking about retirement, active investing may be to go. Active investments returned, even if stocks are crashing and if the economy is in the doldrums.
Timothy Armour and Capital Group
In July of 2015, the board members of Capital Group decided that Tim was most qualified to represent the company as its president. Only Timothy has the experience to lead the word’s most successful investment group. He now leads a staff of 7,600 associates to advise their high-net-worth clients.
Tim has over 32 years of experience in the financial sector, giving him an insight of the market that the youngster investment bankers do not have. His dedication for his company has deep roots since he started during his early years as an equity investment analyst.