Timothy Armour, the Chairman of Capital Group, thinks that Warren Buffett is wrong. Wrong about active versus passive investments at any rate. Recently, Mr. Buffett wagered one million dollars (for charity) that a Standard and Poors 500 passive index fund would get better investment returns than hedge funds over a discrete period of time.
Mr. Armour maintains that with proper research investors can actually earn a greater return from an active fund. The key is finding a fund with an active manager who makes good long term investments, has high fund ownership but with very low fees passed on to the investor. He maintains that such funds can be found at Capital Group.
Follow on LinkedIn.
Mr. Armour has been Chairman of Capital Group since July 2015. Capital Group is the parent company of American Funds amongst other investment entities. He joined the company immediately after he graduated from Middlebury College with a bachelors degree in economics and has been there ever since gaining vast industry experience along the way. Amongst the positions he has held are equity portfolio manager and equity investment analyst.
There are times when the market self corrects which is what Mr. Armour believes occurred in the market selloff in September 2015. More specifically, he believes it was triggered by a slowing growth in China but that it is healthy as it removes “pockets of excess.” Bottom line Mr. Armour recommends investor due diligence and, of course, believes that Capital Goup will stand up to such scrutiny.
Find more about Timothy Armour at http://www.pionline.com/article/20151014/ONLINE/151019956/capital-group-samsung-asset-management-form-strategic-partnership-in-korea.