Posts in Category: Active Investments

Why Every Business Needs Active Investors

It is very rare these days to find a person who has stayed with the same company for several decades, by Capital Group’s Tim Armour has done just that. After obtaining his bachelor’s degree in Economics from Middlebury College, Armour went to work for Capital Group as a member of the associates program and moved up to the Chief Executive Officer position thirty-two years later in July of 2015.

During his time with Capital Group, Armour has done great things for the company. The company fell behind because they chose to use active funds managers instead of passive. It was up to Armour’s team to research and show that being active could produce better results. They found this to be the case so long as the investor handled the situation appropriately. After finding this out, it was up to Armour to present this new information to the public. Before assuming his position as the CEO, Tim Armour was a member of Capital Group’s eight person round table. The company does this in order to make sure that multiple people have a say, running the business in a more collegiate fashion. Part of the reason Armour was on the team was because they were preparing him to take over Jim Rothenberg’s position as the CEO. The company trusted the man who had been with them and shown what he was capable of.

If a company as large as Capital Group trusts his judgment, then when he speaks, people listen. In October 2016, he wrote an article for Wall Street Journal talking about why active investing is beneficial. He makes note that a person would want someone who is researching what is really happening in the world, making sure to get the best profit for their investor. A good example would be countries like China.

Tim Armour makes a point to note that traditional tools to determine the country’s economy are unrealistic as they are transitioning from a closed, investment led country to a open, consumer-led country which is a difficult thing to do; however, there will be strong companies emerging. That is where active investors come in.