Warren Buffet gambled $ 1 million for donation that he can get impressive investment returns than a team of financial managers by just investing in S&P index fund that is passive. From the look of things, when the bet will be decided, Mr. Buffet is likely to collect the bet.
Mr. Buffet is right to say that there are a lot of average and expensive money that are unfair to investors. I agree his resolve to low cost and investment that is simple. It’s good to buy it, hold it as you wait for the long term. Over the decades, Mr. Buffet’s approach of critical analysis of companies which allows for the building of a lasting portfolio before investing from bottom going up has proved to be worthy.
Mr. Buffet gave some wisdom basing on his investing for many years in his latest annual shareholder letter. Here is my view on the same.
First and for most, as it is a norm in many industries, consumers should be watchful of the labels on products. The ongoing argument in industries about “active versus passive” does not help customers. Many of the reciprocal funds give average to poor returns in the long run partly due to management fees being high and excess trading. The changing risks and the costs of an opportunity of passive index on investments are symbolically unknown at the same time. The low costs and delivering better long-term returns on investment is the key component.
On 28th of July 2015, Mr. Tim Amour was elected as the chairman of the Capital Group. Tim will work together with other senior members of the management committee of the firm, to ensure there are communication and implementation of business and overall operations.
Seoul-based Samsung Asset Management entered into a strategic association to work together on the development of effective investment for Korean institutions and retail investors.
The chairman of the Capital Group, Mr. Tim Armour said the bigger plan was to co-design solutions on investment for saving purposes, retirement and insurance needs for the investors in Korea.
Read more at https://angel.co/timothy-armour.