The world’s favorite investor Warren Buffett has made a $1 million dollar bet that he can make better investment returns than a group of hedge fund managers who strictly invest in an S&P 500 passive index fund. Results of his wager will be revealed this year and many believe he will be collecting his winnings. His $1 million will be donated to charity.Buffett has been vocal when it comes to simple and low-cost investments that are held for a long period of time. Warren Buffett also favors bottom-up investing and creating a strong portfolio. Buffett has been vocal telling Americans they need to save even more for retirement. Buffett also encourages Americans to get invested and stay invested.
Warren does not support the “active versus passive” argument, saying they hurt investors. Buffett has discovered strong fund managers by looking at those who have low expenses and high manager ownership. Warren Buffett believes they key to finding experienced fund managers is to look for those who invest a large amount of their own money, which will weed out a small group of fund managers who outpace their competitors.
Tim Armour is an investment expert who supports Buffett’s financial views. He is currently chairman and Chief Executive Officer at the Capital Group. Timothy Armour has over 32 years of investment experience with Capital Group. He began his career with Capial in their associates program. Early in his career, he started out as an equity investments analyst and was responsible for covered global communications and U.S. service companies.Armour received a bachelor’s degree in economics from Middlebury College and currently resides in Los Angeles, California. Tim Armour became Chairman of Capital Group. Armour has become a leading expert when it comes to investing and protecting your investments. Armour has been seen on CNBC discussing investing.Learn more about him: Click here.