Tim Armour from Capital Group Accepts Buffett’s Challenge
Tim Armour is the chairman and chief executive officer of Capital Group and he has answered the challenge made by Warren Buffett who is offering $1,000,000 to the manager of any fund that can do better than his investment model that is simply an S&P 500 passive index fund. Buffett is making an example and by this action, he is telling investors to forget about the “pie in the sky” style of investing and stick to basics. Buffett also has many millions he can well afford to lose.
Timothy D. Armour has an extensive background in investing. He has been in the investment arena for 34 years, all with Capital Group. He has worked his way up to the highest echelon of Capital Group, a firm that specializes in a collegial approach to handling investments for their clients. He holds a bachelor’s degree in economics from Middlebury College. Armour is based in Los Angeles. For more on Tim Armour see the website: Click here.
Both these men are trained and educated in the financial ways of the world and what they represent is not so different.In strong contrast to these two men who take the investment approach, is the trader. The trader is in and out of the markets in strong contrast to the investor who puts money into a mutual fund or a stock and leaves it there. The trader works on a daily high or low and once he has covered the spread is making money. The trader hopes to get out before the stock starts to decline in value. The smart trader gets in on the way up when the general public is unaware of what is happening, but as more and more people find the opportunity to enjoy the upside ride, the trader plans his exit from his position. This often causes mass confusion and fear when new investors see their investments losing value. This often leads to the sale of the position and a loss of money. The trader, on the other hand, watches for a time to reinvest and ride the position for more profit.