Posts in Category: Fund

How Not to Have Your Investment Fail

Warren Buffet bet $1 million that he could get better investment returns than hedge fund managers by investing in an S&P passive index fund. By the looks of it, Warren Buffet will come out ahead to learn more: https://www.thecapitalgroup.com/us/about.html click here.

According to Buffet, there are many funds that are just overpriced and mediocre that end up shortchanging the investor. Buffet has an approach to investing that involves a bottom-up style that involves analyzing companies and creating a durable portfolio and it has proved itself over many decades.

Consumers should be wary of product labels because many mutual funds provide poor returns in the long run. This can mostly be accredited to high management fees and excessive trading. The risks and costs are also almost unknown and while index funds can be good, they don’t offer any cushion against inevitable down markets.

Trillions of dollars have gone into passive investments, but only about half of the 1200 or so investors were even aware that these index funds exposing them to losses and volatility. On average, the managed fund does worse than the market but thee can be some exceptions. The trick is to keep costs low and to find a fund manager who is as invested as the investor. Doing better than the market takes some planning and some smart moves but it will all pay off in the end. It just takes some good choices and a lot of patience. You need to set up your investment to succeed so that you can be successful.

Buffet has a lot of experience when it comes to investment experience and he has a lot of wisdom to share. According to Buffet, it is better to do better than the rest when things go south and on of the most important things an investor can do is build up their nest egg.

Tim Armour has been with Capital Group for 34 years and has gained extensive investment experience. He started in The Associates Program and is now the chief executive officer and chairman of Capital Group. Tim Armour achieved his bachelor’s degree in economics form Middlebury College.