Guilherme Paulus And His Rise To Become A Billionaire

Carlyle Group announced in 2009 they had closed a deal to purchase a little over 63% of CVC Brasil Operadora e Agencia de Viagens S.A. The deal was valued at $420 million and there are currently plans to take the company public in 2018. Founded it back in 1972 by Guilherme Paulus and his partner Carlos Vicente Cerchiari, CVC Brasil Operadora e Agencia de Viagens S.A. grew to become one of the top ten tourism firms in the world and the largest in all the Brazil.

From 1974 the company was brand solely by Guilherme Paulus because Carlos Vicente Cerchiari decided to pursue other things and sold his portion to his partner. Mr. Paulus has served as Board of Directors of CVC Turismo since October 2013, that same year he was featured in Forbes magazine as a billionaire with a net value of over $1.1 billion.

Guilherme Paulus has grown CVC Brasil Operadora e Agencia de Viagens S.A. to have over 209 points of sale, including both domestic and international operations. As one of Brazil’s most respected and loved businessman Guilherme currently employs over 3000 people and contributes large portions of his fortune to charitable organizations. His positive effect and been single-handedly credited for improving the lives of the average Brazilian, he was featured in Money Magazine as Entrepreneur of the year 2017.

In 2005, Guilherme Paulus began investing heavily in the hotel industry and founded GJP Hotels and Resorts or simply the GJP Group. This conscious decision to invest in hotels and resorts ended up having a huge return on investment because by 2014 Brazil was the host for the World Cup, which was followed by the Summer Olympics in 2016. Today GJP has over 15 hotels and resorts as part of their business operations, and there are plans to expand into the highly desired land surrounding airports.

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Active Funds Can Outperform Passive Funds

Famous investor and founder of Berkshire Hathaway has placed a $1 million bet that passive index funds such as the S&P 500 deliver better returns than hedge fund managers. The bet will finish in 2017 and Mr. Buffet is on course to win.

Timothy D. Armour chairman and chief executive Capital Group acknowledges that Buffet is right about the large number of mediocre and costly funds that don’t delivery value to investors. However, Mr. Armour points out that the top five active funds such as American Mutual Fund and Washington Mutual Investor’s Fund have outperformed the S&P 500 over the last 40 years.

According to Mr. Armour the key to active investment is to find funds that deliver value to investors. He says most investors underestimate the risks in passive index funds investments. In 2016, Capital Group carried out some research and found only half of 1200 investors knew that passive index funds exposed them to 100 percent volatility and losses during bearish runs. Mr. Armour recognizes that there is no clear cut way of identifying the best hedge fund managers but there are two factors that are helpful in determining which funds are suitable high manager ownership and low expenses. Mr. Armour notes that funds with low fees and where management has significant funds alongside investors have outperformed indexes on average.

Mr. Armour graduated with and economics degree from Middlebury College. He started his investment career as an analyst for Capital Group Companies where he covered US service companies and global telecommunications. Over 32 years he has gained experience and has risen to become a leader in the investment industry. Adding to his role as CEO of Capital Group he is also the chairman of Capital Group Companies Management Committee and Capital Research Company. He is an experienced investor known for delivering good returns for his clients.