Tim Amour’s Perspective On Mr. Buffett’s Investment Strategy

Mr. Buffett was right when he said that many common costly funds in the market shortchange investors. Firms should offer simple, low-cost investments for customers to buy and hold for the long term. Mr. Buffett’s bottom-up investing approach of meticulously scrutinizing companies and growing a steady portfolio has worked over the decades. In his latest yearly shareholder communication, Buffett highlights sound wisdom from his long-term investing.

Here’s Tim’s modest perspective on the same.

Too many investment funds offer low-quality returns on invested capital because of extreme trading and bloated management fees. In this regard, customers should shy away from fancy product labels. The industry’s active vs. passive argument does not serve shareholders interests. The risk factors of index investments are purely speculative. Experienced hedge fund managers don’t dwell on the active or passive aspect. It’s about producing quality long-term capital returns. You can never go wrong with low-cost investments that offer future higher yields.

Index funds deliver significant returns, but they do not cushion investors against losing markets. They expose clients to 100 percent risk and massive losses during market recessions. But markets evolve. Low profile funds perform better than crowded ones in bad times. An essential strategy a serious investor can do is to nurture their portfolio.

Tim’s Outlook on Asset Selloff in September 2015
Global stocks plummeted in the middle of investor anxiety about the slow economic development in China. A sharp decline in the Asian country’s stocks and a shocking currency deflation further stoked fears that China is crumbling. Tim Amor’s views on the china’s unfolding woes reflect on the US successive gains in the last six years. Other countries experienced the same market bullish effect.

Tim Armour implores that The U.S. markets valuations were extended for some industries and companies. The market correction was not expected. An occasional correction is good for the markets as it eliminates pockets of surplus.

Education and work background
Tim graduated with a B.A honors in economics from Middlebury College in Vermont. He currently works at Capital group and has a total 34years of investment fund management with Capital Group.

Reference: https://www.americanfunds.com/individual/news/senior-management-changes.html

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