Retirees looking for investment advice could do worse than turn to someone like Warren Buffett for advice. Fellow investor Tim Armour, of Capital Group, says that might not be the wisest idea.
While Buffett sings the praises of the S&P 500 passive index, something found in his annual shareholder newsletter, Armour points out the flaw in sticking to these kinds of funds, especially for those coming to investing to build a portfolio to carry them through retirement.
Passive index funds, Armour points out, enjoy popularity in the current environment due to the unusual length of this bull market. But the mark of a successful investor is to the ability to get a return on an investment regardless of current trends.
While Armour concedes that there is simply no way to know for certain which fun will outperform expectations or trends, he has spotted a trend in the analysis of thousands of funds over decades. Funds which had low expenses for those investing and a fund manager personally invested were indicators of positive returns and learn more about Tim.
Armour’s methodology weeds out predatory managers that look to make money off unwitting investors or simply know the fund they manage won’t succeed long in the current, or a changed, environment. This investing method has been applied at Capital Group, and Armour has found that they ave averaged 1.47 percent above index benchmarks after fund expenses were accounted for and Tim on Facebook.
About Tim Armour:
Timothy D. Armour graduated from Middlebury College with a Bachelor’s Degree in Economics. He began his career in equity investment as an analyst for Capital Group. This included a robust set of responsibilities giving him a unique insight into global telecommunications and read full article.
With more than three decades of experience working in finance, Armour went on to become Chairman and Principal Executive Officer for Capital Research and Management Company