Warren Buffet wagered a million dollars that he would achieve better returns for his investment than hedge fund managers by investing in a passive index fund and by the looks of it, Buffet stands to gain.
According to Buffet there are too many funds that are too expensive and just plain mediocre. His strategy is to use a bottom-up approach that involves analyzing companies and building up a portfolio that is durable. This strategy if effective ahs proven itself over many decades. Buffet is the perfect person to deliver the message that Americans need to save for retirement and to make their investments count. He has recently shares some of his investment wisdom in an annual shareholder letter and more information click here.
It’s important to stay wary of product labels and to steer clear of investments that involves excessive fees. It’s better to do well in the long run than in the short term timeframe. Passive index funds have been though to be a safe bet in the past but have been proven to not give much cushion if the market falls. Only half of the 1200 investors surveyed online were aware that index funds exposed them to losses and 100% volitily during downturn markets last year and learn more about Timothy.
There is no set of foolproof rules to follow when it comes to getting good returns for your investments, but the key is to keep your costs and fees low and to invest with a fund manager who is as invested as your are. Overall, the managed fund on average has done worse in the market over time but there are exceptions. Just be sure to keep costs down and get involved with high manager ownership so you have a much better chance for success and Timothy’s lacrosse camp.
Timothy Armour has thirty-four years of investment experience with Capital Group and he began his career in the Associates Program. He got his bachelor’s degree in economics from Middlebury College and is currently based out of Los Angeles. He is a successful equity portfolio manager and the chief executive officer of Capital Group. He is also currently the chairman of Capital Group.
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