Where have all the Star Stock Pickers Gone?

By John Reese (@guruinvestor) —  The days of the star stock picker are largely gone, but aspects of their investment genius live on in other ways. In the mid to late 90s, the Fidelity Magellan fund was the largest mutual fund in existence. Run for years by the legendary Peter Lynch—during which time the fund’s return doubled that of the market– the fund went from $14 million in assets to $40 billion by the time he retired. Magellan consisted of hundreds of hand-picked stocks that met the criteria of Lynch and the managers, including Jeff Vinik, who managed the fund […]

Ritholtz on the Question of When to Sell Stocks

The decision of when to sell a stock, according to Bloomberg columnist Barry Ritholtz, is “perhaps the most overlooked and underappreciated problem in finance.” Ritholtz provides a list of questions for an investor to ponder when attempting to make what can be a difficult and complex decision. These include: What is the basis for the selling? In most cases, Ritholtz argues, clients cite news headlines or emotional reasons behind their desire to sell. “Experience teaches us,” he asserts, “that most of the news is old and is already reflected in stock prices and is not a credible reason to sell.” […]

Dividend Growth and Dividend Yield Strategies

Dividend growth and dividend yield-focused investing approaches, two of the most popular, are not actually separate strategies, according to a recent article in Barron’s. Dividend growth, the article explains, focuses on companies with the ability to grow payouts over time (notwithstanding the relative appeal of the current yield), while a dividend yield strategy targets currently high-yielding stocks with less emphasis on future payout growth potential. The article argues that the approaches of various asset managers supports that a combination of the two is the best approach for investors, and offers examples of relative fund performance: It also cites comments from […]

Ritholtz on Bulls and Bears

To determine whether you harbor a bullish or bearish viewpoint, writes Bloomberg columnist Barry Ritholtz, requires that you consider the causes of the current stock market rally. Ritholtz, a self-proclaimed bull, offers a list of drivers in what he sees as the order of significance. Here are some highlights: Global economic expansion: “Monetary policy,” writes Ritholtz, “is being normalized; growth, employment and wages are mostly solid.” Earnings: Ritholtz points out that earnings are the underlying driver of stock prices and that they have improved in the U.S. and are recovering in emerging markets, Europe and Japan. Sentiment: While referring to […]

Most Read Posts on Validea’s Guru Investor

Below are links to our most popular posts for this week on Validea’s Guru Investor blog. [1] Some Thoughts On Improving the Predictive Value of Morningstar’s Ratings [2] Klarman Warns that Investors are Ignoring Risks [3] Tech Sector Heavy Hitters: The Only Market Constant is Change [4] Peter Lynch Protégé Says “Stocks are Fine Today” ——- Photo: Copyright: arcady31 / 123RF Stock Photo