Tim Armour is the chairman as well as the chief executive officer of the Capital Group. He is an authority on investment and tax savings.
He is now talking about Warren Buffett and his investment strategy. Warren Buffett is talking about the mediocre as well as expensive funds. These tend to shortchange investors. Besides, there are too many of these around. Just like him, even Tim Armour is committed towards low cost and simple investments. Basically he believes that investments should be bought and then held for a long time.
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Tim Armour gives the example of the approach taken by Warren Buffet. He rigorously analyzes the company. This way he is able to build a highly durable portfolio. His strategy has been proved many times over.
Tim Armour believes that Americans have to save more today for their retirement. They need to invest more and stay invested.
He says that investors should be careful of those mutual funds that are providing mediocre returns due to high management fees. Even excessive trading can be another reason for poor returns. It is important to know about the volatility risks before investing. This means that in order to get good investment returns over a long term, it is important to have low costs.
Another thing to note here is about index funds. These are typically considered as being a safe option for retirement. But during market out turns, these are 100 percent exposed to losses and volatility.
Hence Tim Armour suggests that investors should look for low expenses along with higher manager ownership.
Find more information about Timothy Armour at http://relationshipscience.com/timothy-d-armour-p3247776