With $1 million dollars towards charity on the line, Warren Buffett has wagered that he will successfully achieve better investment returns by investing in S&P 500 passive index fund. Buffett’s strategies of keeping costs low and focusing on simple investments has paid off for the majority of his career, though Tim Armour makes a very important point; it is hard to figure out which hedge fund managers are worth working with, and which won’t be able to help enough in the long run.
Ultimately with the baby boomer generation retiring at a rapid pace, the overall cost of retirement has increased, terrifying the younger generations. Americans desperately need to invest for their futures if they plan to have one, which will not be successful with the use of bottom-up investing as Buffett is suggesting. For younger generations to be able to save enough money to be able to afford a stable life after retirement, their tactics to saving money need to improve immensely.
With thirty-two years of investment experience, Tim Armour currently serves as chairman and CEO of Capital Group. Armour was elected to the position of chairman and CEO in July of 2015, and has served his position proud with hard work and diligence ever since. He is also chairman of the Capital Group Companies Management Committee, an equity portfolio manager, and the principal executive officer of Capital Research and Management Company. Click here to know more.
Before rising to the top of Capital Group, Armour received his bachelors degree in business economics from Middlebury College in Middlebury, Vermont. His post-grad endeavors included working as an equity investment analyst at Capital Group, then as a participant in The Associates Group, and continued to rise up through the ranks until he reached the very top.