Tim Armour Argues against Warren Buffet’s Claim about Passive Fund

Mr. Warren Buffet, a veteran investor, surprised the world by confidently claiming that he would rather invest in an S&P 500 passive index fund than invest in the hedge fund. He even went ahead to wager a million dollars to charity in the event that his investment in the passive fund failed to fetch as much as hedge funds fetch. Among the people who disagreed with Buffer was Mr. Tim D. Armour, another respected investment guru.

Tim’s Assessment

Tim acknowledged that Warren’s reputation of getting returns from bottom-up investment approach is good in that it is low cost. He also acknowledged that Buffet’s claim had a percentage of truth in it for there exists unscrupulous hedge fund managers who give investors a raw deal. Tim argued that even though he has a lot of respect for Mr. Buffet, the veteran had gotten it wrong in several fronts.

According to Tim, passive investments are not as safe as they appear from the surface. He argued that these funds place investors at a risk of losing it all during down markets. He noted that investors are misguided to think that the funds are the safest of all investment paths, resulting to trillions of dollars being pumped into it in investments. He noted that about 50 percent of passive fund investors are not aware of the risks that come with the fund. This naivety is largely contributed by the sheer fact that the funds have enjoyed a good run of favorable markets. This ought not to be confused for risk-freeness according to Tim and more information click here.

In Tim’s assessment, there is no clear way to confirm, which between the hedge and passive funds would yield higher returns. He, however, noted that investing in reputable hedge funds would guarantee an investor higher yields compared to an equal investment in a passive fund. The Growth Fund of America and The Investment Company of America are some of the reputable funds mentioned by Tim.

About Tim Armour

Mr. Timothy D. Armour studied at Middlebury College and acquired a bachelor’s degree in economics and Timothy’s lacrosse camp.

Armour made his debut in the investment industry in 1983. Since then, he has worked for organizations, such as The Capital Group Companies, Inc. and Capital Research, and Management Company.

More visit: https://www.thecapitalgroup.com/our-company/management-team.html

Why You Need to Know Jeffry Schneider

Businesses today are criticized for being too big to be agile and change, or to small to attract top talent. Businesses around the globe are struggling to maintain a good balance, deal with the changing legal, political, and economic environments, and stay afloat. So when a person enters the arena with a good idea, is able to build upon it, and generates over a billion dollars, people take notice. This person found the elixir of skills, talent, balance, and knowledge to excel in business. This person is Jeffry Schneider.

Jeffry Schneider is the founder or an investment firm named Ascendant Capital, LLC. His company caters to and delivers for its alternative fund sponsors. Ascendant Capital, LLC has grown from 2 employees to over 30. He, and his team, have raised over $1 Billion. His team relies on open dialogue and trust. Before he began Ascendant Capital, LLC he gained experience working for other investment firms.

In his free time, Jeffry enjoys staying fit and being healthy. He has participated in marathons, iron mans, and half ironmans. He enjoys traveling the world as well. He has traveled through Europe, South America, Asia and more! Jeffry also enjoys giving back to his community. He contributes to many charitable organizations. These include: the Cherokee Home for Children, The Gazelle Foundation, and Wonders and Worries.

Any business would be lucky to pick his brain. He has earned his rightful place as a great and relevant resource. Follow Jeffry on Twitter @jeffryschneider to learn what great alternate investments are, and to get motivation for living a great life! This is the man to watch as he scales up and rises to the ranks of superhero and more information click here!

Stock-Based Loans and Margin-Based Loans Are Great Alternative Financing Solutions

Though many people will tell you that stock-based loans and margin-based are more or less the same because they both engage in the practice of using securities for collateral, there are some major differences between the two they are overlooking that you should know about.

 

Stock-based loans and margin-based loans

 

For instance, borrowers of are not required to be pre-qualified to receive a stock-based loan, whereas borrowers cannot receive a margin- based loan if they do not qualify beforehand and provide an acceptable reason for needing the loan. Obstacles borrowers would face when trying to receive a loan from a bank. A stock-based loan can be used for any purpose the borrower chooses without any restriction.

 

Borrowers also have no obligation or ties to lenders with stock-based loans by way of a non recourse feature that can be found in most stock-based loans. Borrowers are allowed to keep the initial loan proceeds even if they decide to just up and cut ties with the lender of the stock-based loan because the value of the stock decreased. Something that really draws the attention of investors and borrowers who are looking for as little risk possible when choosing an alternative financing solution. Market fluctuation is bound to happen so the key is being prepared when it does.

 

One thing that is synonymous for both stock-based loans and margin-based loans is how they’ve both benefited from the financial crisis in 2008. Peoples loss of faith in banks have led to the seeking out alternative shareholder financing solutions like the two aforementioned. Banks also seem to have loss a bit of faith in people. Since the economic collapse banks have made it even tougher for individuals to qualify for credit-based loans. Their lending criteria has tighten substantially.

 

Companies like Equities First Holding has also taken advantage of the new age economic climate. Equities lending has never been so accepted by individuals, as an alternative to credit-based loans.

 

 Equities First has become a prominent alternative financing solution since its founding in 2002, becoming a world renowned company. Equities First has 650 successful transactions under its belt worth more than $1 billion today.

For More Support visit http://www.equitiesfirst.com/contact

Asset Management Industry Focus | Madison Street Capital

Asset Management as an industry focuses on both physical assets such as buildings, properties, equipment and personnel as well as non-physical entities such as copyright and intellectual properties.
In the ever changing business world of expanding international trade and new digital technologies, as well as constantly changing regulatory practices, it is of the utmost importance that Asset Managers are given the tools like Youtube that they need to adequately manage the assets and capital of their companies to ensure your investors that their investments are well cared for and that they have invested wisely in your company.

Madison Street Capital according to crunchbase provides advisory services in Buy Side and Sell Side practices that are relevant to businesses. As anyone in business today can tell you, the most important asset of any business is its people. Madison Street Capital works tirelessly to use proven leadership methods, sound investment strategies, and growth initiatives to care for your people and in order to help bring your organizations short-term and long-term objectives into being.

Madison Street Capital’s business valuation services first begin to analyze and evaluate your business’s true value, thereby maximizing your potential for present and future business opportunities. Placing emphasis on transacting Mergers and Acquisitions in an professional manner so as to ensure that the greatest assets and talents are utilized efficiently and thereby create the best potential for financial growth as well as safeguarding the corporate culture that you have been building for years.

Madison Street Capital Advisors LLC is a private investment banking firm located in Chicago, Illinois. Madison Street Capital was founded in 2005 and provides a variety of financial services to assist your business and investment needs. These include: Corporate Advisory, Business Valuation, Valuation for the Purposes of Financial Reporting, as well as Financial Opinions for Middle-Market Companies.

Madison Street Capital has offices in Chicago, as well as offices in Africa and Asia. For more information about Madison Street Capital and to discover the business and investment solutions they offer visit www.MadisonStreetCapital.org/ or may be reached via email at [email protected] Madison Street Capital can also be reached at 1-312-529-7000 between the hours on 8am and 5pm Central Standard Time.