Yale Endowment Guru Not Changing Approach after Tough Year

David Swensen, who produced exceptional returns as Yale University’s endowment’s chief investment officer for two decades before hitting a rough patch in 2008, talked to the Wall Street Journal this week about a number of key financial issues, ranging from his own strategy, to Bernard Madoff, to what he believes are the best opportunities in the current market.

Ben Graham Portfolio at Top of The Charts

I always find it interesting to look at the guru portfolios I run on Validea, and ask the question “what is working” now? Over the last month, in a period where the S&P is up 0.4%, 11 out of Validea’s 13 portfolios have outperformed. The best performer is my Ben Graham strategy, up 9.4%. Incidentally, the Graham portfolio is also the best long term performer (up 89.3 percent vs. -12.9% for the S&P since July… Read More

Barron’s 2009 Roundtable Summary: Experts See Uncertain Times Ahead

This is the first of three Barron’s Roundtable articles featuring some of the best and brightest in the investment industry. In general, these experts see more uncertainty in 2009, but think there are ample opportunities for good stock-picking strategies. Writes Barron’s Lauren R. Rublen, “The [roundtable] was rife with history lessons and warnings — and optimism, too, that those who find bargains amid the rubble will reap rich rewards. Or, as [panelist] Meryl Witmer nicely… Read More

Reese: Five Reasons for Optimism

In the week’s Validea Hot List newsletter, Validea CEO John Reese says that, despite the continuing troubles with the U.S. economy, he sees several clear reasons long-term investors should be high on stocks heading into 2009. “Good investors must have the ability to look past the near-term and see the forest for the trees,” Reese writes. “To me, the forest that is the stock market looks quite inviting right now.” Five reasons for his optimism:… Read More

Bogle: Don’t Forget These Lessons Next Time

Investing legend John Bogle, founder of the Vanguard Group of Mutual Funds, writes in a guest column for The Wall Street Journal that investors continually ignore lessons of the past, which cost many dearly last year. Bogle offers six such lessons that we should not forget moving forward:

Neff: “It’s Time To Go In”

In a rare interview, retired value guru John Neff — who put together one of the best track records in history over his three-plus decades managing the Windsor Fund — tells Fortune that now is the time to buy stocks.

Berkowitz’s Free Cash Flow Yield Screen

Advisor Perspectives turns out another good interview, this time with Fairholme Fund manager Bruce Berkowitz. Berkowitz’s leadership has helped turn the Fairholme Fund into one of the most successful funds around. Berkowitz takes time to discuss his investment process. Specifically, he says “we look at a company’s free cash flow relative to its price. Ideally, we look for a free cash flow yield of 10% or better. Then we ask what management will do with… Read More