Is World-Renowned Investor Warren Buffett Wrong?

Tim Armour, the chairman and chief executive officer of the Capital Group, suggests that world-renowned investor Warren Buffett is wrong in the notion that the returns from passive index funds are the safest bet to a secure retirement. Mr. Armour challenges the idea by stating that index funds provide no cushion during down markets. He argues that markets can and do turn, and investors must do better than the crowd during bad times and bad markets.

Mr. Armour says that finding the mutual funds that will outperform index funds comes down to two key categories: Finding fund managers that put their own money in their funds and finding funds with low expenses. He also speculates that passive index investments are just as prone to volatility risks as mutual funds with consistent mediocre returns. Mr. Armour argues against Warren Buffett’s point that passive index funds provide more transparency than active funds. Mr. Armour states that the argument should not be about “active investing versus passive investing,” proclaiming that argument serves little to no purpose for the average investor.

Tim Armour is the chairman and CEO of the Capital Group. Mr. Armour was named chairman in July of 2015, and he has spent his entire investing career with the Capital Group. Based out of Los Angeles, Mr. Armour holds a bachelor’s degree in economics and his experience includes working as an equity investment analyst and covering global telecommunications.

The Capital Group has over 7,600 associates and has established itself as one of the preeminent investment management firms during its 84-year history.

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One thought on “Is World-Renowned Investor Warren Buffett Wrong?

  1. Technically the working committee on economic recovery should be well equipped with the information about top global business. Important areas are also have so many interest in communication and investment promotions in that light. Top pundits will be able to measure the impact so well in order to compare the factors of growth.

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