Warren Buffett’s Investment Approach could be Very Wrong

Warren Buffett gambled with $1 million for charity hoping to receive higher investment returns than any other hedge fund investor. He invested the cash in an S&P 500 passive index fund, and since the results of his bet will be out by the end of the year 2017, it is possible that he might collect it. The good thing about this investment is that it involves little cost and is not complex at all. Mr. Buffet did not just invest in it without any concern, and his approach involved analyzing different companies so as to build a strong portfolio. Timothy Armour, an investment executive at Capital Group does not agree with Buffet’s insights about index funds, and these were his viewpoints:

He said that many companies offer different investment products labeled as active and passive for a consumer to decide on which one to choose. All investments involve costs such as management fee among others and it is possible to earn mediocre returns not only because of the costs involved but because of the volatility risks and other opportunity costs unknown to the investor. Thus knowing a good investment scheme will not depend on the aspects of the debatable active or passive status but the amounts of costs involved and the volatility risk. Many people will convince you that passive index returns stand as the safest way towards retirement. Apparently, they do not seem to offer any cushion in case of market downturns. From a survey carried out in the year 2016, it was revealed that index funds are fully exposed to volatility and losses if market downturns happen to occur. However, despite such arguments, Mr. Buffett believes that investing in passive index funds can bring long-term investments returns and at the same time have peace of mind. To him, the investment was a safe bet and more information click here.

About Timothy Armour

Timothy Armour is a prominent investment executive who serves Capital Group as a chairman and CEO. He has a vast experience in handling investments especially equity investments. He had served different individual and companies in his career at Capital group serving in diverse positions before he became the CEO and also after. He was once an equity investment analyst, and he managed to serve numerous global telecommunications and other U.S. service companies. Timothy graduated from Middlebury College with a Bachelor’s degree in economics and Timothy’s lacrosse camp.

Other Reference: https://www.thecapitalgroup.com/us/about.html

Nick Vertucci- Using Failure to Produce Great Success

Nick Vertucci has been making an impact on the business world for quite some time. A millionaire entrepreneur, Vertucci has worked extremely hard to build an incredible resume. Vertucci is now focused his energy on helping others by sharing his insight. Vertucci’s work mostly hinges on his philosophy- your past does not dictate your future.

Nick Vertucci grew up with a great family and home life. His life was not perfect but things seemed normal. He mentions his fathers death, at the age of ten, as a turning point in his life. His mother began to work long hours in an attempt to take care of the home. Vertucci saw less and less of his mom and the family struggled to survive. At the young age of eighteen he found himself homeless and living out of his van. Vertucci had hit rock bottom.

Despite the struggle, things would soon began to change for Nick Vertucci. Vertucci began his first business selling computer parts. At this time it was clear that Vertucci was born to be an entrepreneur. Things were going quite well for some time. Vertucci even got married and started a family. However, in 2000 the dot com crash dissolved all of his finances and Vertucci was forced to reevaluate his philosophy at http://www.highya.com/flip-with-nick-reviews.

The next period in Nick Vertucci’s life was once again challenging. He spent more than a year and a half with no income and went deep into debt. A simple decision to attend a real estate workshop changed Vertucci’s future forever. According to nvrealestateacademy.com, Vertucci was reluctant to spend the weekend at such an event, but decided to take the invite for a friend and see what the event offered. Listening carefully to the speaker, Vertucci believed he had found a way to turn his situation around.

Years of study and trial and error would eventually lead to great things for Nick Vertucci. It took him more than a decade, but he would eventually develop a system that would lead him to becoming a successful millionaire. He now focuses his energy on teaching his system to other people. Nick now teachers workshops all over the country helping people learn how to find and lock down income-producing properties, How to get started making money flipping homes, Balancing a real estate investing business with a day job and much more on nvrealestateacademy.com. He has clearly taken his pain and produced something great from it.