From a Great Investor’s Perspective

From a Great Investor’s Perspective

According to Warren Buffet, it is important to embrace a bottom-up approach in long-term investment. However, the ‘active versus passive’ index returns debate continue to rage war against this method. Timothy Armour, the Chairman and Chief Executive Officer of Capital Group, while giving his view on Mr.Buffet’s approach say that mutual fund offers volatile risks and their opportunity cost is continually being underestimated. Although the active funds have performed dismally in the markets, there are impressive performances from Americas Funds. While there is no clear-cut way of knowing which funds will work best, Armour comments that research has shown that small expenses coupled with high manager ownership are the indicators of exceptional fund managers.

Armour who is a based in Los Angeles and holds a Bachelor’s Degree in Economics from Middlebury College continues to give his perspective on various investment options which helps shape the diverse market. Further, his election as the Chairman of Capital Group in 2015 has marked the tremendous growth of the company from his vast experience spanning to 32 years at Capital Group. Under his leadership, Capital Group partnered with Samsung Asset Management (SAM) to help Koreans’ achieve long-term investments. The partnership will be instrumental in providing retirement solutions, supporting distribution channels, managing products as well as investment management. The move will ensure a mutual growth of the companies with Capital Group’s products and services being distributed using SAM Channels while SAM will upgrade its ability to invest in equity.

When giving his view on the effect of Donald Trump’s election to the stock market, Armour in his interview with Financial Times indicates that new era will be marked by huge change mainly due to the uncertainty of government policies. This shift has seen some types of investments which were defensive for previous years start to roll-over and various other sector rotations. Armour remarks that it’s hard to say where the market is heading to with the challenges facing globalization not just in the US but also in other countries.

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