The Chairman and CEO of the Capital Group, Tim Armour, commented on Warren Buffet’s investment strategy of wagering USD 1 million towards charitable works. Warren did this with the aim of obtaining better returns compared to other hedge fund managers who simply invest in the passive index fund. Tim supports Warren’s move and believes that cheaper, simple investments should be purchased and held for long periods. Tim Armour emphasizes that the bottom-up investment strategy by thoroughly analyzing firms and building a long-lasting portfolio has been an effective approach for numerous years. According to Tim, several mutual funds lead to mediocre or poor returns in the long run. The low-cost strategy that delivers excellent returns in the long run should, therefore, be embraced by Americans who want to stand out from the crowd even in bad times. Click here to know more about him.
Tim Armour Elected the Chair of Capital Group
Capital Group is the home of American Funds and among the leading investment management companies in the world today. On 28th July 2015, the firm’s Board of Directors made public Timothy Armour’s election as the Chairman of the company’s management committee as well as the chair and principal executive officer of Capital Research and Management Company. The chairman’s position at Capital Group became vacant after James Rothenberg, the company’s former chairman and CEO died of heart attack at the age of sixty-nine years. Tim studied at Middlebury College where he undertook a degree in economics and graduated in 1983. He is based in Los Angeles.
Other than serving the top-most management position, Tim is an equity portfolio manager. He has gained all his thirty-three years of experience in investment at the Capital Group, where he began as the Associates Program’s participant. Tim Armour, who had been groomed to take the position of the Capital Group’s CEO, has the relevant experience to take the company to greater heights.