Warren Buffet, one of the richest men around the globe has been very vocal on the issue of saving for retirement and making investments. Many renowned financial experts have joined the bandwagon, adding their weight to this vital subject.
Tim Armour, the chairman of Capital Research and Management Company, has also been vocal on the same, adding on to the focus towards this topic.
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Another point supported by both Mr. Armour and Mr. Buffett is the fact that a commitment to low-cost, simple investments over a long period could be more profitable in the long run compared to expensive funds, which in some instances shortchange investors. Mr. Buffett has been quoted severally blaming the excessive trading and high management fees for the poor long-run returns gained through funds. According to him, building a durable portfolio through rigorous analyzing of companies, and making long-term investments is the better option.
Tim agrees that the actively managed fund seems to be performing worse than the market. However, he asserts that not all funds are underperforming. His advice on choosing an investment fund is to look out for one where the fund managers have invested their money alongside other investors. Such funds more often than not outperform the markets over the long-term.
Tim Armour is the Chairman and Director at Capital Research and Management Company. He holds a bachelor’s degree in Economics from Middlebury College. Tim has a wealth of knowledge and experience in the finance sector, gained over a long career spanning 32 years. All his working years have been at Capital Group, making him well acquainted with the operations and running of the company.
Mr. Armour has been keen on retirement investments and savings, and this was evident during his company’s partnership with Samsung Asset Management, where he was quoted saying the partnership would cater for the Korean population’s needs regarding retirement savings.