$1 million was wagered by Warren Buffet for the benefit of charity that he will get a better return for his investment than a group of hedge fund managers. The bet looks like it is leaning in the favor of Warren Buffet thus far and more information click here.
According to Buffet, there are just far too many funds that are too expensive and that actually shortchange its investors. Buffet has an approach of bottom-up investing that involves analyzing companies and building a better portfolio. This method has proven to be a successful one over the years and is the one that Buffet chooses to stick to. Buffet has a message to invest and stay invested and to save for retirement and learn more about Timothy.
In a recent shareholder letter, Buffet offered a valuable perspective on this topic and advised to be very wary of product labels. Many mutual funds only give a so-so return in the long-run mostly thanks to incredibly high management fees and trading. The risks that come with these funds are either unknown or greatly underestimated as well and Timothy’s lacrosse camp.
The key is to get good long-term investment returns and you need to keep your costs as low as possible in order to achieve this. Passive index returns are not as safe as they once were thought to be and they do not offer a cushion against down markets so it’s best to be wary of these types of funds. Only about half of the 1200 investors in these funds were even aware that these funds exposed them to 100 percent of the losses during market downturns. It is far better to do better than most investors in bad times in order to grow your nest egg in the long run. The average managed fud has done worse than the market overall but there are some exceptions to this statement and resume him.
Timothy Armour has been working for Capital Group Management for 34 years and holds his bachelor’s degree in economics. He attended Middlebury College and he was also a participant in The Associates Program at Capital as well. He is now chairman and executive officer of Capital Group.