In a letter to his shareholders not long ago, Warren Buffet gave up some of his wisdom. It came from his many years of being a successful investor. The advice was that in many industries consumers should not trust product labels. There has been a long-standing debate over whether to take an active or passive stance when it comes to trust. Looking at things this way is not really helpful to investors according to Timothy Armor. There is a large number of mutual funds that give poor returns over the long run and mediocre service. This is due in part to fees that are too high. Excessive charges are made for management fees and for doing trades.
According to Tim, the opportunity costs and volatility risk involved in passive index investments are not known or are underestimated. Whether they are active or passive should not matter. The real issue is making good returns on long-term investments. The best way to achieve this is with low costs. This way excessive fees don’t eat too greatly into the returns you receive.
Tim Armor attended Middlebury College and he received his degree in economics from it. He was a good student. As a result, he was admitted into The Associates Program at Capital Group. From amongst his peers, Tim stood out, and he was promoted. Tim has been working for Capital Group for more than 30 years. He is now the Chief Executive Officer of one of its companies. He also serves as chairman of various companies.
From time to time, Tim shares his investing expertise with the world by writing columns in various news outlets. He recently commented on an expensive wager made by Warren Buffet. Buffet chose to bet $1 million against another group of investors to see who could get the greatest return.