Is Buffet Right About Passive Investing?

In a piece published on, Timothy Armour took Warren Buffet to task on the billionaire’s stance on investment funds. Buffet made a wager that he would donate $1 million to charity if the S&P 500 outperformed the average hedge fund, a wager that he apparently won. On one hand, Armour concedes that Buffet has a point inasmuch as there are indeed too many hedge funds that are patently bad investments. Armour argues hedge funds are no different than the products put out by any other industry in that customers need to look beyond the hype and marketing and focus on quality to learn more: click here.

On the other hand, Amour points out that the Buffet’s passive versus active argument is problematic as it fails to take into consideration market volatility that is completely unpredictable. Armour argues that while index funds are an important part of an investment strategy, they are no defense against a bear market. It his belief that although Buffet’s focus on fundamentals and long-term investment are tried and tested, passive investing is not some panacea that protects against market downturns.

Timothy Armour is the Chairman of Capital Group, an investment company offering private equity and mutual funds, with $1.39 trillion under management. Armour joined Capital Group after graduating from Middlebury College with a degree in Economics. He worked his way up at Capital, starting as an intern and eventually becoming an analyst specializing of investment in the telecom sector. He then became one of the company’s top portfolio managers. He was chosen as Jim Rothenberg’s successor, becoming Chairman in 2015.

In 2015, Armour commented on Capital Group’s partnership with Samsung Asset Management. Armour said that the partnership’s goal was to jointly create investment products for the Korean market. At the time of the announcement, Capital Group had more than $275 million under management from Korean customers.

Interesting Facts about AXA Advisors

AXA is a French insurance company that operates in many countries across the world. It has its headquarters in the 8th arrondissement of Paris. The firm is engaged in investment management, global insurance, and other related financial services.


The company has managed to retain the position of the first insurance company globally for eight years in a row. The brand value grew 14.5% in 2016 alone. The AXA Group mainly operates in Western Europe, the Asia-Pacific region, North America, and the Middle East. It also has a minor presence in Africa.

All the business in individual countries are run independently and they operate according to the laws that regulate insurance in those countries. AXA is also part of the Euro Stoxx 50 stock market index. The company was rated as the second most powerful transnational corporation over the financial stability of the world. Barclays was rated as the most powerful

The History of AXA

The company can trace its roots to 1816. It was initially known as the Ancienne Mutuelle. After an acquisition in 1978, the company changed its name to Mutuelles Unies. Another acquisition in 1982 caused it to rebrand as Mutuelle Unies/Drouot. The AXA name was adopted in 1985. It has continued to grow mainly through acquisitions in different parts of the world from North American to Switzerland. The company made a decision in 2016 to stop investing in tobacco shares.

About Vinny Parascandola

Vincent Parascandola is the Senior Executive VP of AXA Advisors LLC. He is in charge of sales, recruitment, retention, productivity, and the development of experienced and new financial professionals. Mr. Parascandola has a wealth of experience that is 25 years long. He began his career at Prudential in 1987. In 1990, he joined Money Life insurance company where he held various positions. He finally joined AXA Advisors in 20014.

Vinny has earned numerous accolades in recognition of his leadership abilities. For instance, he has been the recipient of the GAMA Career Development and Master Agency Awards. Vinny is a much sort after speaker in numerous conferences related to the insurance sector.