Warren Buffet feels that the financial market has many underperforming funds and that he can make better returns by investing in S&P 500 Passive Index Fund, and he actually might be right. Warren Buffet feels that the focus should be on long-term investment rather than thinking of cutting profits in short term as it can be risky, and does not add to the long term wealth creation strategy.
Warren Buffett is one of the most successful investors in the stock market, and it is because he has been able to create a stock investment portfolio after carefully and analytically researching on the strips he invests in.
The stocks and funds that are fundamentally strong offer long-term value to the investors. When investing in funds, it needs to be checked what the management fees and the volume of trade are. It is due to these factors that the returns drop greatly, and the benefits never reach the end users. One other factor that significantly contributes to long-term wealth creation is to ensure that the investment portfolio is diversified across varied industries.
Tim Armour, who is also a highly prominent figure in the financial world and is the CEO and Chairman of Capital Group, feels that Warren Buffet is right with his assumptions about the current situation of the financial market. Tim Armour has graduated in Economics from the Middlebury College and has close to four decades of experience in the financial industry. Tim Armour says that for people to create wealth in the long-term, they need to start early and to stay safe from the market volatility; diversification of investments they make is an essential attribute.