Warren Buffett is a name that is synonymous with success in finance. One would think his insight into investing would be beyond reproach, but Tim Armour from Capital Group Companies recently wrote an op-ed that exposes what he sees as a substantial flaw in Buffett’s method.
Buffett recently issued a charity challenge to other hedge fund managers, but claimed that by sticking to the S&P 500 passive index fund he could make more money that the rest. While Armour concedes that this may be a safe enough bet for one of the most successful investors in the world during an abnormally long bull market, it’s not how investor’s should think, especially with a bear market coming for us any day now.
Armour wrote that for investors returns are all that matters, and passivity can’t always guarantee that. Nothing can. But a strong indicator of a fund that returns higher than benchmark indexes are those where managers have personally invested.
It’s the same method Armour employs Armour employs and claims he averages returns 1.47% higher than benchmark indexes after fund expenses are calculated. For those entering into the market for the first time, Armour suggests sticking to funds where the managers have a personal financial stake in its success
About Timothy Armour
Timothy Armour is an American businessman and investor. After graduating from Middlebury College with a Bachelor’s Degree in Economics, Armour joined the Associates Program at Capital Group Companies.
32 years later, Armour became such an essential fixture within the company that he became Chairman and Principal Executive Officer of Capital Research and Management Company.
Read more on Bloomberg.
Todd Lubar is the TDL Global Ventures, LLC president. He also holds the post of Senior Vice President to Legendary Investments. Lubar went studied at Sidwell Friends School based in Washington DC (1977-1987) when he proceeded to high school at The Peddie School in Hightstown , New Jersey. After his high school education, he enrolled at Syracuse University where he graduated with a B.A. in speech communication in 1995.
After graduation, Todd Lubar got his first job with the Crestar Mortgage Corporation. He stayed at this firm from 1995-1999. He then joined Legacy Financial group that was based in Arlington Texas. Todd helped in growing the Maryland office to become a production unit raking in numerous 100 million dollars annually in loan volume. He stayed on with the company until 2005 and decided to move on up by accepting to become the senior VP at Charter Funding, a First Magnus Financial Group division, based in Arizona. He worked in the same position until the month of August, 2007.
Going Back to His Roots
At that time, the mortgage industry was undergoing a lot of changes and Todd Lubar decided to go back to his roots. He started focusing on acquisition money mortgage inauguration with the Priority Financial Services. Priority Financial Services specializes in assisting home owners and buyers irrespective of their credit rating to get homes. The loan experts work hard to ensure that customers get services in an easy and fast process to enable them start saving to reach their financial goals. As much as Todd has focused primarily on mortgage banking in his career, it did not stop him from investing in other industries. Todd owns a number of companies operating in the Demolition Industry, recycling industry, night club industry and the real estate improvement industry.
Industry Ranking and Experience
Todd Lubar’s name has featured constantly for several years in the top 25 ranking of mortgage originators operating in the country. His vast experience in various industries has equipped him with the necessary skills and knowledge on what makes a business run efficiently, and how to excel in any business environment. Recently, Todd has ventured into another new industry that is focused solely on lending a helping hand to people who are in need.