Silicon Valley has become rather well known for certain business practices. Companies in the region do tend to bring some innovative ideas. But it’s hard not to come away from the area with some less than flattering impressions.
The average Silicon Valley company often seems so caught up with appearing innovative that they become just another fish in the larger tech sea. But real innovation doesn’t blindly chase trends. Innovators do just that, they innovate. And one can easily see that when looking at GreenSky credit. And the same goes for GreenSky’s CEO, Sahm Adrangi.
The name might not create the same sparks of recognition as many other successful CEOs. In fact, many people know him in large part because of his notable reluctance to promote himself. He’s a rare counter to the flashy presences in the area.
He seldom accepts invitations to speak at conferences. And it’s even rare for him to sit down for the shortest interviews with the press. And he never parades himself in front of employees to wave novelties in front of them.
It stands in stark contrast to the other companies. But it shows as true innovation when one looks at GreenSky’s overall performance. That’s when things click and one begins to realize something. Sahm Adrangi isn’t reclusive, he’s busy guiding his company into greater and greater victories.
When one understands this simple fact it can help inform opinions on the company as a whole. For example, it makes use of up to around 17,000 contractors. And they’re well known for being able to deliver amazingly fast results. For example, letting people use apps as part of the loan process. And then using that same app to deliver a decision within seconds.
Much of GreenSky’s efficiency probably comes from Sahm Adrangi himself. He puts results far ahead of publicity within his professional life. And Sahm Adrangi also clearly wants his company to focus first and foremost on efficient practices which benefit both GreenSky and customers alike. Given the success of both Adrangi and GreenSky, one can see that there’s quite a bit of merit to the idea.
Warren Buffett bet $1 million dollars (proceeds to will be given to charity) that he can achieve a larger investment return than a group of hedge fund managers. He claims he will be able to do this by investing in an S&P 500 passive index fund.
Timothy Armour, financial expert, acknowledges that Mr. Buffet is correct in his stance that the number of expensive and low quality funds is detrimental to investors. Simple and low cost investments are better in the long term, so this approach of bottom-up investing has historically achieved great results.
Timothy Armour states that people need to be more aware of product labels and avoid mutual funds that provide small long-run returns due to large management fees and overtrading. It is not about active or passive but rather long-term investment returns and keeping costs low. Index returns are good when used responsibly, but they can be risky in down markets. The most important thing an investor can do is build a safety net.
On average, an actively managed fund performs worse than passive investments. That said, there are exceptions to this if the investor knows what they are doing. For example, putting $10,000 in the first S&P 500 index fund would have produced over half a million dollars today. Putting in the time and research to learn which funds to invest in is essential for this type of payout. Timothy Armour realized that you need to ignore all high-cost funds and instead focus on locating fund manages who are investing a lot of their own money.
Timothy Armour’s firm has 86 years of experience and is proof there is nothing random about success in the market. They have averaged 1.47 percentage points above relevant index benchmarks annually.
He received his Bachelor’s degree from Middleburg college. He has over 30 years of experience in investment at the Capitol Group. He is now the Chief Executive Officer of Capital Group and was named Chairman in 2015.
Timothy Armour has noticed dramatic changes in the market following Trump’s inauguration. He believes that Trump will end the slow rates of economic growth and spur a new movement of investment success.