There’s much debate about Warren Buffett’s wagered against hedge fund managers on Wall Street. According to Buffett, he can earn better returns on simple, long-term investments than the traditional high-quantity investments hedge fund managers usually make. For common people, this discussion is a bit confusing.
Thankfully, people like Timothy Armour are explaining the wager more clearly. Warren Buffett’s wager is saying that by investing in simple passive index funds, like S&P 500, the investor will earn profits; which in its most basic form is true. The stock market is overflowing with too many mediocre and expensive funds that repeatedly shortchange investors.
Often, hedge fund managers use these types of funds because if successful, the reward is much higher. Buffett, a renowned expert, believes in buying simple funds that earn over time. It’s a strategy that he’s used for decades, and he is one of the world’s wealthiest people and read full article.
While Buffett is likely to win his wager, it’s important to note that investing in passive index funds is not always a guarantee. No one can foresee the future, so no one can truly say when the market will turn and resume him.
Even experts like Timothy Armour, Chairman and CEO of Capital Group, advises newcomers to the market to be cautious. Mr. Armour has over 30 years experience as a financial advisor and investor. He’s spent his entire career at Capital Group, since participating in their Associates Program after college.
More visit: https://medium.com/@timarmour