Using a passive index fund investment in the S&P 500, Warren Buffett has bet $1 million for charity that he can beat a selected group of hedge fund managers just using this strategy.
It looks like he’ll win.
Timothy Armour of Capital Group has commented on this pointing out that the average investor is more familiar with and feels safer with mutual funds even though a relatively large margin of profit is lost due high management fees and excessive trading with each trade having its own fee. Most people are unaware that index funds are heavily exposed to the volatility of the market and will show losses when a down market occurs.
He feels the true goal of a good investor is the ability to have a portfolio that can make a profit with only a few quick adjustments when a bear market hits.
An ‘East Meets West’ as Capital Group Partners With Samsung Asset Management
Capital Group, a U.S Company in the financial service industry, has announced the formation of a partnership with Samsung Asset Management located in Seoul, Korea. Founded in 1931, Capital Group is one of the largest and most prestigious global investment firms with assets in excess of 1.3 trillion dollars.
This partnership is designed to increase the liquid assets of Samsung Asset Management for an increase in investments and also allow Samsung Asset Management to understand Capital Group’s business methods and its approach to client management.
Tim Armour spoke of long term concept of understanding the needs from a Korean point of view when it cam to what they needed regarding insurance retirement investment planning
Timothy Armour and the Capital Group Investment Firm
In July of 2015 the Board of Directors of one of the world’s leading investment management firms, Capital Group, confirmed their choice of Tim Amour to become the Chairman. Tim has spent 32 years with Capital Group and is currently serving as Chairman of the company’s Capital Research and Management Division.