Category: Investment Professionals

Capital Group, World’s Most Respected Financial Institution

In 1931, Jonathan Bell founded the Capital Group in Los Angeles city of California. Although it was a small company, it gradually grew into the world’s biggest financial institution. Tim Armour is the big boss of Capital Group. He is the Portfolio Manager, Chief Executive Officer and Chairman of the group. Armour is also the Chairman of company’s Management Committee. He is the Principal Executive Officer and Chairman of Capital Research and Management Company which is a branch of Capital Group.

Timothy Armour’s entire investment career of thirty years is with Capital Group. He went to Middlebury College to get a bachelor’s degree with major in economics. In 1983, he decided to join The Associates Program of Capital Group as a participant. Due to his excellent performance, he soon got the job of investment analyst. Initially, he covered American Fund services companies and international telecommunications businesses.

On 28 July 2015, Tim Armour was elected as the Chairman of Capital Group. He and his team of top managers take care of operations, communications, and setting & implementing business strategies. Before Armour, Jim Rothenberg was leading Capital Group as the Chairman. After his sad demise, people were convinced that Armour is the most suitable person as Rothenberg’s successor. Janet Yang, CFA said Tim Armour can foresee the future. He can examine the demands and needs of businesses as well as needs of the employees. He has a major contribution to the success of Capital Group which made him the perfect choice for this position. People were amazed when Armour chose Netflix over Blockbuster years ago. His decision, however, turned out to be correct as Blockbuster is Bankrupt while Netflix’s worth is over forty-five billion US dollars.

In an article posted to the Wall Street Journal online, Timothy Armour says that an exceptional eyesight is not required to make the right decision. He chose Netflix due to the company’s index fund. Investors at that time thought video renting was a dying sector so Netflix would fail. He said active managers should look for the value of places instead of the average for a longer period.

Timothy Armour also said that understanding the economic recovery is vital. In the current situation, revenues can’t increase due to fewer profit margins. The fluctuating oil prices and higher interest rate have challenges as well opportunities. For managers to understand that, in-depth analysis is vital. Armour is working with Samsung for the Asset Management program which will develop retirement solutions for employees.

For more information, find Timothy Armour on Facebook.