Warren Buffett claims in an article about wrong investment strategy that he can garner better investment fund returns than hedge fund managers easily by investing in S&P 500 passive index fund. In order to back his claim, he has wagered $1 million towards a charity. The idea that an active income is better than a passive one has been a debate in the industry business for quite some time, but it doesn’t really serve it’s investors.
While there are a number of mutual funds that provide it’s investors with low long-run returns due to excessive trading, a lot of people don’t always take into account opportunity costs and the volatile risks associated with passive index investments. While you can make an exorbitant amount through passive income investments, you can also make more from active investment income funds in a shorter time.
Timothy Armour who is the CEO and chairman of Capital Group is also an equity portfolio manager. Timothy has 34 long years of investment experience with Capital Group. Early in his career he covered U.S. service companies and global telecommunications while he was an equity investment analyst. He started his career in the associates program back in 1983 and received his bachelor’s degree in Economics from Middlebury College.
In July of 2015, Capital Group’s Board of Directors announced that Timothy would be the Chairman of Capital Group. Along with being the companies CEO and Chairman, he is also the principal executive officer of a branch of Capital group.