When people start considering retirement, they of course wonder over their potential to survive on their existing nest egg. This is what gets many people to consider investing for the first time. In an effort to learn just how they should begin, many turn to successful investor Warren Buffet in search of advice. But not everyone agrees this is the right move.
One of Buffett’s favorite pieces of advice points new investors to the S&P 500 passive index fund. It’s relatively affordable to buy in to, volatility is low, and in the current bear market it’s a safe way to see modest but continuous returns. Fellow investor Tim Armour says this is the wrong way new investors should think about investing for the first time and learn more about Timothy.
It would be pointless to claim Buffett isn’t successful at reading the market, but Timothy Armour suggests he, and many other investors, aren’t accounting for the unusual length of the current bear market. It simply cannot last for ever, and making returns on investments in even the most difficult environments should always be the primary concern for an investor regardless of experience. So what is a newcomer to do?
Instead of looking for passivity, Armour argues that they should instead focus on how much they are expected to pay in fund expenses. This is where predatory ventures capture unsuspecting investors. And a way to find a sound fund and invest with some confidence is to look to how much the manager of that venture is personally invested and read full article.
By focusing on these two elements, Armour has confidently been able to maintain a steady rate of returns regardless of the overall state of the stock market. According to thousands of funds he’s managed, Armour boasts a consistent 1.47% higher rate of return than benchmark averages after fund expenses were covered and Tim’s lacrosse camp.
About Timothy Armour
Timothy Armour graduated from Middlebury College in 1983 and took his education in economics to Capital Group Companies.
After 30 years working in finance as an investor and manager, Armour went on to become Capital Research and Management Company’s Director, Chairman, and Principal Executive Officer.