Timothy D. Armour has business views that he states after a strict scrutiny of the market and comes up with defined conclusion on the market trends. Tim says that due to the 1 million dollar charity that Buffet wagered, he will have good returns by investing in an S and P passive index fund. Buffet avoided expensive fake funds that give investors a disadvantage.
Tim Armour says that he supports the lowering of costs by Buffet that if held for long will help in teaching American people that they need to save money for retirement, invest, keep on investing for the long term purpose of stability and enjoyable retirement.
Given all these perspectives he has some degree of objection to Buffett’s view. Warren Buffett says that many mutual funds give unrealistic and poor returns after a long time. This is because of a lot of money that is needed to manage the companies and excessive trading. There are risks too that are taken, and the opportunity costs are underestimated and unknown. It is about the delivery of long-term investments returns that will have made the investor incur low-cost input.
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Tim Armour goes on to say that passive index returns are not a good path to a better retirement. Out of these investments, the people contributing them are exposed to complete volatility, the risk of giving losses in market selloff.
Best deals are made by wisely contributing to the funds. The best fund managers have low expenses and high manager ownership. They invest a lot of their funds and getting managers who will put in a lot of their money too will lead to consistently outpaced benchmark indexes on average. He continues to give good comments on how one can wisely involve himself in business.