Warren Buffet has been investing for the past five decades and being the second wealthiest man on the planet; many people value his advice. He has been through bullish and bearish economies dozens of times and still managed to make it to the top as an investor.
Recently, he shared some nuggets of wisdom about the investment choices he thinks would be best for people who are starting to plan for their sunset years, and one vehicle that he is not happy about is the hedge funds. He has such little faith in the funds that he made a wager to invest in an S&P 500 passive index, stating that he would make more within a lesser time than people who were investing in the hedge funds. The current market analysis shows that Warren is winning the bet.
One other investor that has been following the debate is Timothy Armour. Timothy is the Principal executive and chairman of the Capital Research Management Company. He shares the sentiments of Warren Buffet and says that hedge funds have a terrible combination of common services and expensive costs on the client. Tim Armour shares the idea that for a one to establish a substantial investment portfolio, they need to have a combination of patience and intelligence so as to spot the beneficial ventures and build from the ground upwards.
The idea of investing in a certain field because it is trending is another mistake Tim believes everyone needs to avoid. He encourages people to look at their unique situation and make the investment choices that suit them best.
About Tim Armour
Tim has been at the helm of the Capital Research and Management Company for the past several years. His many decades of experience in the financial services is one of the reasons his company is as successful as it is. Timothy is an economics degree holder from the Middlebury College.
Find more on TheCapitalGroup.com.