Active ownership beats passive trust

A recent article on CNBC presented an interesting contrast in investment strategies. Warren Buffet had presented that he could beat talented hedge fund managers by a simple passive investment in an S&P 500 index. His point that typical hedge funds tend to ride the volatile market and take more losses is generally a true statement. Generally.

As the article continues to state, much more should be taken into account when deciding where to invest. The author, Tim Armour of The Capital Group Companies, states wisely that “there is nothing random about doing better than the market average over the long term”. As with any major decision in life, key factors and proper research must be considered in the final path. The key factors in this decision? Tim says the key factors are low fund expenses and high manager ownership. It makes sense that the more the owner is invested in a fund personally, the more personal he or she will take making fund investment decisions.

Having served in the Capital Group Companies since 1983, Tim Armour became the Chairman and CEO of the company in July of 2015. He earned a Bachelors Degree in Economics in 1982, and brings almost 34 years of economic and investment knowledge to the head position of the Capital Group Companies. His advice and positions on fund management are sound, believing that a sound fund starts with a dedicated manager who practices personal ownership.

Looking ahead to a post-Trump election economy, he believes “huge” changes are on the horizon. With early growth in the financial and fossil fuels sectors, the future will prove to be an interesting shakeup from the long-term “norm”. Either way, Tim’s path and future are looking up as he leads from the front in a massive global economy.

Learn more: https://angel.co/timothy-armour