Tim Armour is currently serving as the Chairman and the Chief Executive Officer of Capital Group. He has earned a reputation for knowing all about investments fund and savings on taxes.
Tim Armour talks about Warren Buffett and the investment strategy used by him. He says that Warren Buffet shows his concern for the mediocre funds and the expensive investment funds too. This is because these funds are shortchanging the investors. And there are a lot of them around.
Tim Armour agrees with him on this. Even he is more committed towards investments that are low cost as well as simple. He says that investments are meant to be bought and then retained for a long time. This is the best way to optimize their returns.
This is where Tim Armour also gives an example of the approach that has been taken by Warren Buffet. This is a person who analyzes the company rigorously. He takes a lot of time and puts a lot of effort in it. This is why he has been able to build a durable portfolio this way. His strategy highly successful fund. This has been proved by him many times over.
Next, Tim Armour wants to emphasize that Americans need to save more. This is basically to look after their retirement needs. Hence they must investment fund more. Besides, they need to stay invested in order to maximize returns.
But Tim Armour also asks investors to be careful of all those mutual funds provide mediocre returns. This can be due to the high amounts of management fees being charged. Or else there can be excessive trading that may lead to poor returns. Hence investors must know all about the volatility risks before they invest. After all, good investment returns are possible only in case of having low costs over a long term.
Tim Armour also mentions that index funds may be considered a safe option for retirement purposes. But in a case of market outturns, they get 100 percent exposed to volatility leading to losses. This means that investors have to look for low costs but a much higher amount of manager ownership.