Investing wisdom from 6 legends

We looked at the investing styles and lessons from a few investing greats.
By Morningstar |  10-07-18 | 

Lessons from a momentum fund manager

Gerald Tsai was a famed practitioner of what later came to be named "momentum investing". He would buy stocks with positive price and earnings trends and sell when the momentum displayed signs of subsiding. In fact, he has often been credited with pioneering the use of momentum investing in money management.

How to select stocks that aren’t destroyers of capital

Paul Black believes that to be a growth investor one must be optimistic about the future because it is the optimists who rule the world. His investment credo is to bet on great growth companies with superior cultures whose competitive advantage keeps getting stronger.

Forget growth v/s value, look for best value

Bill Miller follows an eclectic value investing strategy. He evolved his strategy to not just buy companies that were cheap statistically but looked for undervalued companies that could actually earn decent returns and happened to be cheap temporarily for a variety of reasons.

3 pieces of advice

John Bogle is one of the brightest icons in the financial world. Invest you must. Not investing is the only way to guarantee that in the end you will have nothing. Having said that, ignore the “market”. Stock market fluctuations are just noise. A giant distraction from the business of investing. For new equity investors, here are three basic lessons you can learn from him before you venture into stock territory.

6 investing pointers

Anthony Bolton earned the stellar reputation as Britain’s Warren Buffett when he was head of Fidelity Special Situations Fund in the U.K. With exquisite timing, he stepped down in 2007, at the top of the bull market, and boasted of annualised returns of 19.5% over the 28 years he was at the helm. Here are some investing lessons from him.

7 nuggets of wisdom

Howard Marks reminds investors that every investment approach, even if skillfully applied, will run into environments for which it is ill suited. Buy and hold. Growth stocks. Value stocks. Small stocks. Large stocks. Foreign. Domestic. And that means that even the best of investors will have periods of poor performance. Nobody performs great all the time. No approach will allow you to profit from all kinds of opportunities or in all environments.

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