Tim Armour, the well-known fund manager of American Funds took to CNBC to write a response to Warren Buffett’s claim that passive fund management is most often the safest bet, and is also usually the smartest choice. Buffett claims that the majority of actively managed mutual and hedge funds are inefficient and that investors would be well served to choose a passively managed fund. In addition to stating that this is the safest way to go, Buffett also put forth the challenge that it is also the path that will bring the greatest level of returns. Tim Armour disputes this claim and respectfully disagreed with the Oracle from Omaha.
Armour does agree that there are a number of mismanaged funds that do get regularly out-performed by the market indices but he does not agree that this result is always the case. Yes, there are funds that charge exorbitant fees and that execute trades that are unwise and end up being costly, but Armour’s argument is that there are plenty of incidences where this is decidedly not the case. He believes that there are a good number of actively managed funds out there that consistently out-perform the markets.
While many people focus on the safety of passive funds, Armour brings up a very relevant point about the number of opportunities that are missed due to this passive management. In addition to being risk averse, passive funds can also create an environment where they are also growth-averse. By doing nothing but tracking the market, these funds can miss out on many smart trades that when executed in an efficient manner can create many significant returns. When active funds are properly managed without these inflated fees and nonsense trades, Armour believes that they will consistently beat the market.Warren Buffett is one of our nation’s very best financial advisors, and taking a position that does not agree with him 100% is not done very often, if at all!
Samuel Strauch is an active investor in numerous restaurant and online business. He is also an art and photography lover who did not take any formal education in art and photography, but still, people still claim that the picture taken by him are one of the ideals portray of proper meaning and message that he wants to convey through those pictures. Samuel Strauch took his formal education at Hofstra University in business by studying at his New York campus. He also completed few professional courses from Harvard University.
Samuel Strauch wanted to be a self-made man, and for that purpose, he tried to start a new business, and he was running it very well. But he never knows that one day he will be back to his forefather’s business i.e. real estate business. When he was working hard and trying to take his business to new heights, due to some reason he had to come back to what he was destined for, his family business of Real Estate in South Florida.
SO, in 2002, Samuel Strauch founded his own company, Metrik Real Estate and worked hard to make it a reliable and trustworthy name in whole Florida when it is about real estate. His company offers services in in equity acquisitions, sourcing, management, brokerage and development of real estate in Latin America along with the South Florida.
Related: Samuel Strauch on the ePodcast Network
Metrik is a forward thinking and progressive company that based in South Beach, Florida. A vertically integrated platform by Metrik is divided into few crucial areas: Brokerage, Equity and Development and the Management. Metrik ultimately expanded operations in many Latin American countries to offer world class real estate services to not just the local of Florida, US but the client all across the globe. The success of Metrik has been achieved by the teamwork of each and every employee under the leadership of Samuel Strauch through their hard work and dedications.