Commentator Provides Insight on Warren Buffett’s Annual Shareholder Letter
Earlier this year, in February, CNBC Commentator and Chairman of Capital Group, Tim Armour commented on information contained in an annual shareholder letter written by Warren Buffett. In the correspondence, Buffett stated he wagered $1 million to a charity and expects a higher investment turn compared to hedge fund management groups. He invested into a S&P 500 passive index fund and simple long-term investments while keeping cost low. Armour is supportive of his long term investing strategy and acknowledges his decades of experience in the investment management industry. He gives insight and facts on index funds and says a group of fund managers have outpaced benchmark indexes consistently.
Tim Armour said, in the February 27th commentary that Warren Buffett proves his investment strategy is efficient and works for him. Only time will reveal if his $1 charity wager will be successful. They both share similar opinions on mutual funds and its high management costs and low returns. Armour provides his perspective and experience on passive index investments, noting its volatility risks and overall cost. He believes what should be considered is delivering long-term investment returns and low cost.
Tim Armour is Managing Partner and Chairman of Capital Group, a leading global investment firm specializing in long-term investments. He accepted the Chairman seat, in July 2015, after the passing of former Chairman Jim Rothenberg. Capital Group is one of the world’s largest hedge fund management firms, managing more than $1 trillion in assets. Armour joined the firm in 1983, starting as an intern and eventually moving up to managing partner, and Chairman of the Board. Tim has built a successful career with a financial servicing firm founded in the early 1930’s by Jonathan Bell Dovelace, in Los Angeles, CA.