It is said that great minds think alike. And, in the case of Warren Buffett, Timothy Armour and the best ways for investors to see gainful returns on their investments, the truism surely applies to finances. Quite recently, Buffett puts his money where his mouth is, and industry captains are backing his play by expounding on his strategies. The detail of this scenario is a bet made by Warren that he can out invest leading hedge fund managers by simply investing wisely in the S&P 500. Think Iron Chef with a monetary twist.
According to Armour, Buffets strategy, which consists of buying low and holding on to stocks for the absolute longest terms possible, is the best way to get to Paid-Ville. They both agree that the market is overrun with funds that simple brag more than they deliver when it comes to any real growing of wealth.The bottom line is that investing proves to be work, and it requires dedication plus a good amount of skill. It also requires looking at a company or stock to invest in from the bottom up. That means not following someone else’s store-bought opinion on what makes a company look good and finding out for yourself why it is worth investing in.
This boils down to active investing and saying no to passive index investing. This old method of tracking trends within a market does not work as well as it once did, simply due to the winds of change over technology, international markets and the culture of gaining profits in general. It just does not stand up to the volatility and faster pace of today’s market.See now, Timothy Armour knows exactly what Buffett is talking about when it comes to making the safe smart bet all the way and all day. That is what he does as chairman and Principal Executive Officer of Capital Group Companies. He is also chairman of the Capital Group Management Committee. Presently, he is an equity portfolio manager, but he has more than enough experience as an equity investment manager to know what works and what does not when it comes to making investments. The long game is his strategy, as he has only one name on his resume, post-graduation from Middlebury College.