It looks likely that Mr. Buffett will collect and achieve better investment returns than groups of hedge fund managers after he wagered $1 million for charity by simply investing in an S&P 500 passive index fund. According to Tim Armour, the chairman of Capital Group, Mr. Buffett’s strategy is the best since it commits to low costs and simple investments that can be held for a very long time. However, the chairman cautions that consumers should be wary of product labels and the “active versus passive” debate as it does not serve any useful purpose to investors. He also notes that investments are not always about active or passive forms, rather, it is about delivering good long-term investment returns at low costs.
Tim Armour is the current chair of Capital Group. His rise to this position was in 2005 following the death of former Chairman James Rothenberg in the same year. The promotion was based on years of investment experience and unwavering determination to see the company where he kick-started his career as a participant in the Associate’s program grow to greater heights. With his bachelor’s degree in economics from Middlebury College, Armour started as an investment analyst where he covered global telecommunications issues in U.S service companies before ascending to higher managerial levels.
In efforts to steer the company to success, Timothy Armour has spearheaded many projects including the expansion of their services to the Korean market through a partnership deal with the Samsung Asset Management. The two firms agreed to focus their resources on for main areas namely, investments administration, product supervision, support for distribution channels, and retirement organizations.
Moving forward, Capital Group continues to flourish amidst the emergence of many competitors. This trend can be attributed to the robust and stable culture that is planted by futuristic portfolio managers such as Tim Armour who always reminds investors to use two simple filters-high manager ownership and low expenses to “find managers who earn their keep.” He views the September 2015 selloff as a critical step towards market stabilization but says that President trump’s administration will lead to stipulated growth of the international community characterized by an upsurge in taxation.