A wager set by Warren Buffet detailed that he would donate $ 1 million to charity if he lost in investment returns as compared to S&P 500 passive index fund. With the turn of things, the businessman looks like he is most likely going to collect. According to Mr. Buffet, there a lot of funds that are out there to shortchange investors. His approach to wealth creation is by investing small and holding for a long time. The method of bottom- up investment is time tested and has continued to be a reliable approach to investors.
Many consider passive index returns as a safe path to better retirement. However, while index funds have their spot in the industry, they provide no safety measures in the occurrence of down markets. A study showed that a larger percentage of investors are not aware of the risks that index funds hold to their capital. Investors have no clear way of identifying the funds to outperform others. Therefore, the key point is to determine exceptional hedge fund managers. Low-expense and high manager ownership funds are the best for investors seeking security and profits.
While finding exceptional capital managers remains a daunting task, Tim Armour lists among the best. He is currently the chairman of Capital Research and Management Company. He is also the president at Capital Group. On July 28, 2015, the management at Capital group announced that Tim Armour got elected as the chairman of the organization. His 32 years of experience in capital management would help the institution expand its capabilities.