Investments are crucial drivers of the financial success of everyone, including entrepreneurs and professionals. Luckily, investment opportunities run far and wide to accommodate every interested party. For this reason, it is prudent for an investor to analyze and evaluate the current state of the investment market to ensure he or she makes a sound decision.
Evaluation of ever promising investment may over-weigh the investor due to his other commitments. At this juncture, the professional services of an investment analyst are required. The expert does all the work for the investor other than providing the finances. This, in turn, simplifies the investor’s task and all he gets to do is continuously monitor his funds in the investment and seeking advice from the expert as he or she awaits lucrative returns. Timothy Armour is one such specialist in the finance field, and the world knows it.
Timothy Armour is a renowned analyst in investments and finance. For this reason, he was called upon by CNBC to give a professional opinion on Warren Buffett’s decision to invest a tune of one million dollars in an S&P 500 passive index fund. Mr. Buffett claimed that investing in a passive fund is by far more lucrative than committing your funds to a hedge fund. Well, you may be wondering how true it is yet hedge funds are most popular? Tim has an answer for you.
For starters, Timothy Armour is in full support of Warren. He concurs with him that many of these funds are not only mediocre in performance but also way too expensive for investment. More so, these same institutions shortchange investors in their returns. He is also in agreement that investors should commit their finances to the low cost and simple long-term investments.
Timothy Armour articulates that Mr. Buffett’s investment approach has been a success and solely relies on the keen scrutinizing of investment funds and also building a long-term portfolio. As a result, he has appealed to the investors in America to invest and maintain the investment through saving for retirement.
As is the duty of any specialist, Tim Armour also offers his advice on product labels. He urges consumers to be keen on the many labels on the provision by the industries. He says that returns on long-term investments of funds are low due to the exorbitant management fees and their increased trading activities.
Moreover, he explains that the opportunity costs and volatility risks of passive index investments are either underestimated or unknown. For this reason, they deliver solid long-term returns on investments due to the associated low costs compared to other conventional funds.
However, passive index investments have their cons. These investments offer no guarantee against down markets. They expose investors to 100% volatility and loss in the case of adverse market changes. As for the average fund, they are not as lucrative but they have their exceptions. Active funds have more returns in the long-run with more wealth accumulation.
Capital Group, under the leadership of Tim Armour, is in a strategic partnership with Samsung to develop active investment strategies for investors in Korea. The alliance aims at offering retirement solutions and asset allocation products to enhance investors’ capability.
Tim Armour holds a degree in Economics. His experience in investments is broad. Armour’s career commenced in the early 1980s as a participant with Capital Group and later on became the company’s investment analyst. Currently, he is the CEO, Chairman, and the firm’s Equity Portfolio Manager.
Extensive research by investment analysts has assisted many investors in making the right decisions in investments. Tim Armour gives you the advice to invest in low expense and high manager ownership firms. These institutions are bound to manage your finances in a better manner considering that the managers have a stake in their total investments.