Passive Index Investments Shortcomings

Published / by TheRugbyUnion

A one million dollar donation to a charity would grab the attention of any one. Buffet stated that he would donate this large lump sum of money if he was false in his belief of passive index fund investing.

Tim Armour agreed that Buffett was correct in some ways, but not all. He agrees that there are way too many expensive funds shortchanging investors and bottom up investing works. However, Warren believes that a passive index fund is the way to go. And this is simply incorrect. Passive index investments are typically underestimated and are unknown to the investor.

Tim, an experienced investor and fund manager commented that Buffett’s views are shortsighted and doesn’t always apply. Armour stated that investors should be looking at how the funds are managed and the cost of their expenses and feels that investors should be moving their investments towards funds that have low expenses.

With over thirty years of experience, Tim’s advice is solid. Tim went to college at Middlebury and currently resides in Los Angeles. He explained that he supports some of Warren’s beliefs since he has held true to his bottom up investment strategy, but in this case he is wrong. As a chairman of Capital Group, one of the most influential investment organizations, Tim Armour can say with confidence that investing in funds just isn’t about passive index investments.

Read more: Timothy Armour, Capital Group CEO, Says Post Trump Change in Markets ‘Is Real’