Warren Buffet is one of the wealthiest men on the planet. With a net worth of 76 billion US dollars, he is the second richest man in the country after Bill Gates. Interacting with Warren sheds some light into the level of understanding that he has for entrepreneurship. Before he makes an investment, he studies the market, the feasibility and decides which innovative twist he can apply to it to make it profitable to the maximum. Recently, he made a bet that he can invest in an S&P 500 passive index fund and earn more than most of the hedge funds in the country. The wager is supposed to materialize this year, and all factors indicate that he will win it.
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Timothy Armour assessed this bet, and he agrees with Warren Buffet’s sentiments. He voiced his opinion over the little success that the Hedge funds have been achieving in the past few years. In his exact words, he stated that the funds had a lethal combination of being expensive and very mediocre and by the end of the day, they were shortchanging clients. Another idea that he shares with Warren Buffet is the idea of building one’s business portfolio from the ground upwards. Another thing Armour believes in is the power of making enough savings for the sake of the sunset years, and he encourages as many Americans to make savings as possible.
The other thing that he states is that customers need to stop buying into the consumerism trend and make sober-minded decisions depending on their individual situations. He added that most of the people that were making these investments had no idea what they stood to lose in case of economy downturns.
About Tim Armour
Tim is the Chairman, Director and Principal executive officer at the Capital Research and Management Company. He has served as an executive and financial advisor in several other companies. He holds a Bachelor’s Degree in Economics from Middlebury College.
Visit thecapitalgroup.com for more information about Tim Armour.