Tim Armour: Warren Buffet’s Investment Strategy is not Watertight

Tim Armour has questioned one of Warren Buffet’s investment strategies. Armour has challenged Buffet’s confidence in passive index fund investments. Buffet had bet $ 1 million dollars on the fact that he would get better returns by investing in a Passive Index S&P 500 Fund than in a group of hedge managed funds. Tim feels that though Buffet might win that bet, his investment strategy is not watertight. It also carries a serious investment risk just like mutual funds. It is, thus, not wise to follow Warren Buffets investment strategy blindly. A careful assessment of the fund’s performance in the past is necessary.

Tim agrees with Buffet on the fact that thousands of mediocre mutual investment funds that shortchange investors exist. However, before taking the risk and investing in Passive Index funds, it is important also to note that there also exemplary funds that yield good returns for investors. What matters most, therefore, is a careful analysis of an investment. One of the factors to consider while investing should be if the managers of the fund in question have themselves invested in it. The other consideration should be the fund’s expenses. It is wise to invest in low expense funds whose managers have invested heavily alongside other investors in the fund. Investment risk is everywhere, and passive index funds are not always safe as Buffet posits and learn more about Tim.

Tim Armour

Tim Armour is an experienced investor with more than 35 years’ experience in equity and financial investments. Currently, he is the CEO and chair of Capital group, a global investment firm. He was elected the chairperson and chief executive officer of the group in the year 2015 after the demise of the company’s founder. Tim joined the capital group back in the year 1982 through its associate’s program. He has served in various positions at Capital Group, including an equity investment analyst. Before joining the Capital group, Tim had studied Economics at Middlebury College and more information click here.

Tim has expressed optimism on the post-Trump market changes. He has noted that after trump’s election markets have witnessed faster growth and interest rates have soared. The Trump changes seem to have startled the markets. The markets now appear to be waking up from the distress of the 2008 global financial crises. Tim states that he is confident that Capital’s Strategic partnership with Samsung Asset Management will be a viable venture. He expected the funds specifically designed for the Korean markets would be productive. Regarding the 2015 sell-off triggered by China’s economic woes, Tim says that the move was expected and healthy. He says that this form of market correction removes excess money from pockets and Tim on Facebook.

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