What an investor should look for when choosing a fund manager

Article recap

Warren Buffet is right when he says that there too many average fund managers that normally shortchange investors. The writer supports Warren’s commitment to low cost simple investments and that they should be held for the long term. He says that there no one is better at delivering the message that people should save more for the future than Warren Buffet. This is due to the fact that Warren has proved his policy of bottom-up approach and building portfolio investing.

The writer says that consumers should be wary of product labels. Many funds provide poor returns in the long run which can be attributed to excessive trading and high management fees. Another problem is the understatement of volatility risks and the opportunity cost of passive index investment. However, it’s not about passive or active but the delivery of long-term investment returns. The notion that passive index returns are the safe path to retirement should also be challenged.

Investors should be guided by two principles while looking for a good fund manager. They are low expenses and high manager ownership. An investor should find a fund manager who invests their money alongside the investors in own fund.

Tim Armour career and education background

Tim Armour is the Chairman and Executive Officer of Capital Group. He has amassed a combined experience of 35 years in investment all Capital Group. Tim a graduate from Middlebury College and holds a degree in economics. He began his career at Capital in the Associates Program as a participant. This is after joining the company in 1983. In his early career at Capital equity investment analyst, he was tasked with U.S. service companies and global telecommunications.

Tim Armour advice to investors and partnership with Samsung Asset Management
Tim advises investors that they don’t have to settle for average investing returns. This he says comes from the many years of experience that he has had in investing. Further, Capital Group and Samsung Asset Management announced a partnership aimed at the development of active investment strategies for investors in Korea. The investors include both retail and individual