Two Better Investment Components Than The Active/Passive Strategy

While agreeing, in part, with Warren Buffett’s investment strategy of “passive” index returns against more “active” hedge fund investment plans, Timothy Armour of Capital Group has some sage advice for investors looking to protect themselves for retirement.

Instead of deciding if one should principally invest in one strategy over the other, it’s far more important to pay attention to two key components; that of low costs and high manager ownership (those investment managers who “eat their own cooking”). Timothy Armour also warns against the notion of passive long term investing being a true, risk-free path to a safe retirement. Eventually a market will turn and these index funds are certain to suffer from these losses. A certainty far too many investors seem to be unaware of these days.

So when investing it’s vital to have a manager who has their own “skin in the game” and that they have their costs low. This means, no matter what, when the market eventually takes a down-turn you have a better chance of protecting your future by outperforming everyone else.

Timothy Armour was named chairman of Capital Group in 2015 while serving as chairman of it’s chief subsidies Capital Research and Management Company and Capital Group’s management committee. His extensive experience as an equity investment analyst and portfolio manager began with Capital Group in 1983 in the Associates Program. He entered the program after receiving his bachelor’s degree in Economics from Middlebury College and has remained with Capital Group ever since.

Since it’s founding in 1931, Capital Group has continued to rise as a trusted investment management company due to upholding it’s tradition based on patience and long-term investing goals built on a solid foundation. Tim is helping Capital Group to ever bigger rewards for it’s investors and he sees a recent partnership with Korean based Samsung Asset Management as the proper means to “fulfill the savings,retirement and insurance-linked needs of Korean investors”.


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