Tim Amour has a bachelor’s degree from Middlebury College in economics. His education lead him to start a career at Capital Group as a participant in the associates program and later became the chairman and chief executive officer of Capital Group and principal executive officer of Capital Research and management company Inc. Tim Amour covered global telecommunications and U.S. Service companies as an Equity Investment Analyst, also an Equity Portfolio Manager.
In the article Tim argues that Mr. Warren Buffett way is wrong, Tim agrees with Mr. Buffett in certain areas, like making investment in long term return. Tim disagreement is how the industry can put labels on products, specific labels like “Active Versus Passive”. Investors should be aware of these labels; this will not help you reach a goal of trying to save for retirement. Investors should challenge the passive index; challenge how passive index returns are safe path for a better retirement.
What people don’t realize is that passive index will also expose losses when the market is going down. Investor can do better in bad times versus the others and actively managers are even worse, he gives an example of investing money in the company in today’s market you would have five hundred thousand dollars, if you invest the same amount into a fund manager, you can make more money. Tim believes there are two simple ways to do better than the market. If you get rid of all the high fees, get fund managers who will invest their own money, this will give you a group that will do better in time and be better than the market. Click here to know more.
Tim wants investor to save and get ready for retirement and he believes this is the best way to do it.