Wager of One Million
Buffett decided to donate 1 million dollars to a charity as a wager stating that he could have create a better investment return than a specific group of managers in a hedge fund. A donation of one million would hold the attention of any individual or charity. He promised that he would make that donation of funds only if he was wrong in his beliefs of passive Index Fund investing.
Tim Armour agrees with Warren Buffett and states that there are far too many mediocre and expensive funds. These funds have the potential to short-change investors and he supports Warren Buffett’s commitment to low cost and simple Investments. Mutual funds are accustomed to offering mediocre or poor long-term returns, mainly because of high management fees and trading that can be considered excessive.
Tim Armour’s Straight Forward Views
Tim Armour a very experienced investor and manager of funds disagrees with some of Buffett’s views. He has commented that he feels they are short sighted and should be focusing more on whether or not the funds are being managed correctly. Hedge fund managers have a tendency not to buy in on the Investments and this can be considered a downfall for investment funds. Armour states that investors should be actively moving their investments so that they have low expenses. By doing this they are able to make sure that the fun is not being wasted and the managers have an active interest in what happens to the fund itself and learn more about Timothy.
Tim Armour went to school at Middlebury College where he received a bachelor’s degree and he’s currently working at Capital Group which is located in Los Angeles California. According to Armour low-cost investments is the perfect investment for a long term strategy to yield stocks that are low and guarantee a return and more information click here.
Other Reference: https://www.business.com/advice/member/p/timothy-armour/