The Oracle of Omaha, Warren Buffett is known for participating in investments that make the long-run very profitable. Usually when Mr. Buffett says that he is heading in a particular direction of an investment, the crowd goes along, hoping to make a profit with him. The ability to bet against Warren Buffett is a rare thing and if a company wants to justify the opposition, they should put their money where their mouth is.
Mr. Buffett placed a bet for a million dollars that he could beat a group of hedge fund managers by simply investing in a passive fund found in the S&P 500. In most peoples opinion there is good reason to believe that what he is doing is based on some unknown strategy that he has used to amass his billions, but that is not clear.
He is a bottom-up investor so there is a lot of investigating done with anything that Mr. Buffett participates in. One thing that is clear, he believes that the investment is a very safe one and does not risk him losing his million.
An article written by Timothy Armour, CEO of Capital Group, talks about this wager made by Warren Buffett. Mr. Armour is a believer that the Trump Era is going to be one that ushers in higher inflation and stronger growth. He is betting that the new normal is not the wave of the future and that quicker economic growth is realistic. While most of the hedge-fund managers are skeptical of a Trump phenomenon changing much, Mr. Armour is not in that camp.
Mr. Armour became the leader of Capital Group in 2015 and has taken the unprecedented step to manage funds himself. He is keeping his ear to the floor, so he might have an inside track to what is going on in the market.