Warren Buffet is the third richest man on the planet, after Bill Gates and Amazon’s Jeff Bezos. To get to the point that he has, and as an investor in the traditional business platforms must have taken a lot of planning and strategies. Warren has been giving a lot of selfless advice on the investment vehicles that work, and the latest wisdom nugget is that S&P 500 passive Index could be more beneficial than hedge funds. He made a bet that he would invest in the platform and according to the current market statistics, he is on to something.
Timothy Armour, the Principal Executive at the Capital Research and Management Company, has seconded this opinion by Warren Buffet. He states that he has been doing his research about these hedge funds and that they are not doing as well as they should in helping people create healthy and active investment portfolios. When Tim compared the cost of investing in a hedge fund to the potential returns, he concluded that the cost is too high, compared to the potential returns. He discourages people from adopting certain investment options because ‘everyone is doing it,’ arguing that the hedge funds are taking advantage of this mentality.
About Tim Armour
Timothy D Armour is the Principal Executive Officer at Capital Research Management. He has more than 20 years of experience in investment and is one of the most trusted financial advisors. He is a graduate of the Middlebury College of Economics and a very inspirational businessman.
Learn more about Timothy Armour at http://www.pionline.com/article/20151014/ONLINE/151019956/capital-group-samsung-asset-management-form-strategic-partnership-in-korea