According to Timothy Armour, CEO of Capital Group, Warren Buffet has a point when it comes to his opinion on commitment to long term, low cost, investments. Armour notes that many mutual funds under the specific categories of active and passive can provide mediocre returns for their investors
According to Armour those looking to invest in mutual funds should seek funds that have a high level of manager ownership as those funds are more likely to surpass the average index. Passive investments are not the safer investment choice because the costs of the investment is typically unknown or vastly underestimated. There is no way to see the future of mutual funds so investors should choose firms that have lots of investment experience and can grow their money long term.
Timothy Armour is the Chief Executive Officer of Capital Group, one of the largest investment management firms in the world. Armour graduated from Middlebury College in Vermont and joined Capital Group in 1983 as a part of The Associates Program. Timothy has over 35 years in investment experience and a Bachelor’s Degree in Economics. He began his career with Capital Group as an Equity Portfolio Manager and took the position of Chairman, Director, and CEO in 2015.