The investment world is all a buzz about Warren Buffett’s $1 million dollar wager. One of the latest experts giving his perspective on this matter is CEO and Chairman of Capital Group, Timothy Armour. He has 34 years of financial experience, in many aspects of the industry. While attending Middlebury College, Armour participated Capital Group’s Associates Program. He’s been with the company ever since.
There are hundreds of thousands of people who take Armour’s perspective to heart. Timothy Armour’s opinion of Warren Buffett’s wager, he agrees with Buffett. The $1 million for charity wager stipulates that Buffett invests in an S&P passive index fund and must outperform every group of participating hedge fund managers and read full article.
According to several expert sources, Buffett will win. Armour explains how there are an endless number of mediocre, expensive funds that shortchange investors. Committing to low-cost, simple investments and holding them for a long time is almost guaranteed profit. This is a strategy Buffett has used hundreds of time and proved over many decades.
On the other hand, investors should not pour all their funds into passive index funds. There’s no supporting evidence which suggests that passive funds are safe or guaranteed. In certain situations, passive funds have more benefits than active funds. In other situations, active funds have more benefits. It’s not about whether it’s passive or active; it’s about earning good long-term investment returns. No one can predict the market and learn more about Timothy.