Warren Buffet put up $1 million for charity so that he could receive better returns than by simply investing in an index fund. By the looks of it so far, Warren Buffet stands to gain a lot from this decision. According to Buffet, there are too many overpriced funds that really do not give back a whole lot to their investors. Buffet’s approach to investing has proven to be quite successful over the past years.
Buffet advises consumers to be wary of product labels. Many funds provide poor returns in the long run, because of excessive fees and trading and the risks are high. It’s best to get good long-term investment returns for your money and low costs are vital to making that happen. Only half of the 1200 investors were aware that index funds exposed them to more than 100 percent of losses during downturns in the market, according to online surveys. It’s best to toss the high-cost funds in order to do better in the market and get a better return.
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The average managed fund has done poorly in the market but according to Buffet, there are exceptions. Americans, for the most part, are now in charge of their own retirement funds and it’s time to get thinking about a plan.
Timothy Armour is the Chairman and chief executive officer of Capital Group, and has over 34 years of investment business experience with Capital group. He holds a bachelor’s degree in economics that he obtained form Middlebury College.