Mr. Buffet’s thoughts lead to the conclusion that investors have been shortchanged for far too long by expensive funds. He, Mr. Warren Buffet, believes and practices the simple investment strategy of building up one’s investment portfolio by the bottom-up approach. Decades-long application of this approach have paid off and reinforced on the thought that Americans need to save and invest more for their retirement.
In an analysis of Mr. Warren Buffet’s tactic in investing, one ought to look at the long-term returns of their investments generated and not purely rely on whether the investment is passive or active. This is so when one considers that several mutual funds offer poor returns on the long-term investments. As a second consideration, most individuals ride on the belief that passive index income is a safer bet to a fulfilling retirement. However, such incomes are not cushioned against market dynamics leaving investors exposed to the effects of a market downturn.
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As an advice to investors, focusing on doing better against the market trend is a goal whose returns are rewarding. Finally, on selecting fund managers, individuals should consider selecting firms with a high ownership by the managers as well as their low expense policy. These are some of the insights Tim Armour considers as worthwhile conversation points in returning value to the individual American investor.
Timothy D. Armour, popularly known as Tim Armour, is a portfolio manager and offers financial advice to active and potential investors. His 34 years of experience in investing has propelled him to the position of chairperson and Chief Executive officer at Capital Group. He heads the management committee in the same company. Tim’s life in the financial world traces its origin from Middlebury College, where he received a bachelor’s degree in the field of economics. As a key contributor in Capital Group’s associate program, Tim built his wealth of knowledge in investments working his way to head the firm. His approach to investment is one to always look out for.