While commenting on an article published on CNBC, Tim Armour supported the idea of bottom-up investing, saying that it is a low cost and simple investment that would be held for a long term. The article posited that Warren Buffett was wrong to invest $1 million in charity. Unlike hedge fund managers, Warren focuses on achieving better returns by investing in an S&P 500 passive index fund.
According to Timothy, this strategy has delivered results in the past decades, compared to the mediocre funds that are expensive to the investors. Tim challenged the assumption that passive index return is the solution for a better retirement by arguing that index funds do not survive down markets. Many investors are unaware that with index funds, they are exposed to 100 percent of the losses when markets crash.
About Timothy D. Armour
Timothy D. Armour is the chairman of Capital Group of Companies. He is also the chairman of the company’s management committee, and Capital Research and Management Company, a subsidiary of Capital Group. Capital Group is among the leading investment management firms in the world, and home to American Funds. Tim was appointed to serve as the company’s chairman in 2015. Over the years, he has been overseeing the overall business strategies and operations of the company. Timothy assumed his role after the death of the former chairman, Jim Rothenberg.
For over 32 years, Timothy has been working for Capital Group. He has gained immense knowledge and expertise in the competitive financial industry. The company strives to deliver superior investment products and services to its clients. Timothy started his career by participating in the company’s Associates Program before becoming an equity investment analyst where he focused on global US service companies. The Los Angeles-based portfolio manager is an alumnus of Middlebury College where he earned his B.S in Economics.
Learn more about Tim Armour: https://www.ft.com/content/28953b12-dccb-11e6-86ac-f253db7791c6