Warren Buffett, the reputable and trusted billionaire investor, was quoted as saying that he would be able to make higher returns by investing in the S&P 500 index rather than using a managed fund portfolio. While he may be right in a bull market, where returns tend to be high for all investments, Tim Armour, CEO of Capital Group, states that he will have no protection for his investments if the market takes a downturn.
There have often been debates about the passive or active natures of investments and how they affect returns that can be earned on investment portfolios. Armour says that the debate should not really be about passive versus active investments. There are really only two things that should be considered when trying to find the best investment portfolio for your retirement: management ownership and fund expenses. Using his knowledge of the markets and resources, Tim Armour has found that these funds will often outperform the markets over long periods of time, not just during bull markets or shorter periods of time that some investors like to use to show their returns. He says that if you are looking at a longer time frame, such as the time an individual begins an investment for retirement to the time they actually retire, you need to use a model that will be more consistent with that timeline.
Tim Armour has 34 years of investment and fund experience. Before being the CEO of Capital Group, he was an portfolio manager and an equity investment analyst. He currently holds Board positions at several different investment firms and is committed to staying up-to-date on new information that will help his funds outperform the market. Tim Armour graduated with his Bachelor’s degree in economics from Middlebury College in 1982, and he has been winning in the world of investments ever since.