Warren Buffett has made a $1 million dollar wager that he he will achieve better investment returns than a bunch of hedge fund managers who only invest in an S&P 500 passive index fund. The bet is expected to be settled this year and it appears that Warren Buffett will win. He has promised to give the $1 million to charity.Warren Buffett is not an advocate of the “active versus passive” argument, saying it does not help investors. Warren Buffett has found strong fund managers through a pair of filters which include low expenses and high manager ownership. Finding fund managers who invest a large amount of their own funds will weed out a small group of fund managers who have outpaced the competition.
Buffett strongly supports simple investments that are purchased and held for a long period of time. Buffett advocates “bottom-up” investing and creating a strong portfolio. Warren Buffett has become vocal when it comes to encouraging Americans to save even more for retirement. Buffett has also encouraged Americans to start investing and stay invested.Tim Armour is the Chairman and Chief Executive Officer at Capital Group. Timothy Armour has gained over 32 years of investment experience, all with Capital Group. He began his career with Capital in their associates program. At the beginning of his career, he started as an equity investments analyst where he covered global communications and U.S. companies.
Tim Armour earned a bachelor’s degree in economics at Middlebury College. Tim Armour was elected Chairman of Capital Group in 2015. Timothy Armour currently resides in Los Angeles and is ready to help those who are ready to invest and advise them in any way he can help. Armour has made tv appearances on MSNBC and CNBC where he has discussed investment topics and other financial issues.
PR Newswire recently reported on a legal action by Relmada Therapeutics against Laidlaw & Company and its two principal officers, Matthew Eitner and James Ahern. The complaint by Relmada alleges that Laidlaw divulged information about Relmada and its products designed to eliminate or reduce pain when used by p[atients. Laidlaw countered by claiming that they were brought in to help raise capital for Relmada and now Laidlaw should have a governing control of Relmada. Read the full story:
U.S. Federal Court Issues Temporary Restraining Order Against Laidlaw & Company And Its Principals Matthew Eitner And James Ahern
Relmada is a young company when compared to Laidlaw and Company. Laidlaw traces their origins back 100 years. A glimpse of the 5-year chart of Relmada is frightening. Most skiers would lose control on the slippery slope of Relmada’s recent decline.
Relmada’s claim may be unworthy, but there is a great deal of contention between clients and brokerage firms. Laidlaw like all firms has had complaints but sometimes such complaints are not justified. The world of the novice stock broker is eerily similar to a used car salesman. Management for both professions realizes that the novice brings family and friends as possible customers, and it is usual that sales can be made benefitting the novice salesperson. But this novice sales person does not know whether the car is a lemon or that the stock is a dud. In cases of customer disputes, it is usually the novice salesman who is criticized and pays the price for his well-meaning actions.
Unfortunately, investors expect too much from their brokers. Investors need to do a fair share of work on both selecting the brokerage firm and their possible choices for investment. The broker and the client, have a mandatory sit down meeting where the goals and the background of the client are discussed so that the broker may know of the client’s past trading experience and his financial status.