A bet placed by Warren Buffett to wager $1 million for charity to receive a healthier return by investing in a S&P 500 passive index fund caught the attention of investors.
One of those investors is Tim Armour, Equity Portfolio Manager and Chairman at Capital Group Companies, Inc. Buffett bet was against a group of hedge fund managers receiving a better return compared to his investment strategy. He says, thus far, it seems his wager maybe a winner, but the result will be determined during the year.
Tim Armour explained that Buffett’s approach of investing in distressed companies and building robust portfolios have proven to be effective for many decades. He commented on the most recent released annual shareholder letter provided by Warren Buffett. In the letter, Warren Buffett offered his wisdom involving his $1 million wager and years of experience as an investor. Armour says it’s about delivering long-term investment returns with low costs, which doesn’t involve passive or active index returns. He explained that index funds offer investors no leverage when markets are down.
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Tim Armour joined Capital Group Companies soon after earning an Economics degree from Middlebury College. Capital Group announced in July 2015 that he was elected as Chairman to replace the former chairman after his passing. Mr. Armour moved up the hierarchy from the bottom working as an intern to serving as Equity Portfolio Manager and Chairman of the Board.
Learn more about Timothy Armour: http://www.investmentnews.com/article/20150729/FREE/150729863/capital-group-parent-names-armour-chairman-replacing-rothenberg