Many people do not take investments or savings too seriously until it’s too late, and Warren Buffet is concerned that this trend is growing dangerously in the United States. Warren Buffet says that many funds shortchange the customers and are failing to provide the returns that can be considered sizeable to the average population. It is what is making people look away from investing, and it is affecting their savings in the long term. He wagered $1 million on the fact that he can generate more money from the S&P 500 Index Fund than from the top five hedge funds out there.
It is contradictory to the fact that hedge funds are supposed to be more aggressive in offering significant returns to the customers. Warren Buffett says that people need to study more on the investment options available in the market and then put their money at the likely option that assures of long-term wealth creation.
Tim Armour, Chairman, and CEO of Capital Group, which manages over $1.4 trillion in assets, believes that Warren Buffet is completely right in his assumption that the financial market is underplaying the investments made and not offering lucrative returns to the customers.
Tim Armour has over 38 years of experience in the finance industry and has been with the Capital Group from the very beginning. He joined Capital Group in 1983 and has been with the company ever since. As the CEO and Chairman, Tim Armour has helped with much international collaboration, including with the Samsung Asset Management of South Korea, assisting them with devising retirement planning tools for the general population.