Tim Amour, who is the CEO of Capital Group, the largest active fund managers in the world, agreed that Warren Buffet would collect his $1 million after betting in 2007. He attests that Vanguard S&P 500 passive index funds would over the next decade outperform a group of hedge fund managers. Tim concurs with Mr. Buffet that there are too many hedge fund managers charging very high fees for their mediocre management and trading services, which leave clients with poor returns in the long run. He agrees that Mr. Buffett’s bottom-up investment approach is a good strategy in preparation for retirement.
In an annual newsletter, Mr. Buffet shared some insight on investment. He addressed the active vs. passive investment debate saying that it serves no good to an investor and what an investor should focus on, is getting long-term investment returns at low costs. Despite the poor performance of averagely managed hedge funds, he acknowledged five best managed active funds with Capital Groups being named as one.
Tim Amour gave two filters that investors can use in identifying excellent fund managers: low expense regarding fees charged and high manager ownership, a manager who has also invested high amounts alongside their client. According to Tim, Capital Group has an investment experience of 653 years which has enabled the firm to consistently annually average 1.47 points above benchmark indexes. As a firm, they are helping investors earn high returns and be in charge of their retirement and Tim’s lacrosse camp.
About Tim Amour
He joined Capital Group over 30 years ago before rising to the helm of top management in July 2015 following the death of James Rothenburg, former CEO. Despite being the Chairman, he still diligently manages the $100 billion American Capital Income Builder Fund. He also chairs Capital Group Management Committee and Capital Research and Management Company and learn more about Timothy.
He attained an Economics degree from Middlebury College before beginning his career in Capital as an associate in the Associate Program. Later, he became an equity investment analyst before rising to the CEO position. Under his leadership, Capital partnered with Samsung Asset Management in October 2015 to develop investment solutions that cater for the savings, retirement, and insurance needs for Koreans.
During the market sell-off in 2015 that was triggered by China’s economic crisis, most investors were afraid to invest. But according to Tim, the crisis served to correct the markets, and it would not affect developed countries like the US. He encouraged investors to capitalize on investing in the struggling enterprises because they would reap great benefits in the long run and more information click here.