A Money Manager with a Long-Term View

Nancy Zevenbergen set up her own investment company at age 28 and, by 1992, had an office, 51 clients and $212 million under management. This according to a recent article in Forbes. Today, Zevenbergen Capital Investments operates out of a small office in Seattle, overseeing $2.4 billion in assets. The article outlines the founder’s career path and accomplishments. Her firm’s flagship growth equity fund, it reports, has returned 11.5% annually, net of fees, since 1987… Read More

Former Franklin Templeton CEO Says Stick to your Discipline

Over a more than 46-year investment career, former Franklin Templeton portfolio manager Don Reed has learned patience, says a recent Morningstar article. In an interview on January 31st (the formal date of his retirement), Reed offers investors the following insights: Sticking to your guns can be tough: During the tech bull market of the late 1990s, Reed recalls, Templeton owned no tech stocks because the companies didn’t meet the firm’s valuation criteria. With some stocks,… Read More

Why Value Investors Need “Mental Toughness”  

At the end of the Super Bowl, a jubilant Tom Brady attributed the Patriot’s win to the “mental toughness” the team had demonstrated all year–which, no doubt, came in handy when they entered the fourth quarter trailing the Falcons by ten points. Unless we’re talking about basis points, things would be pretty dismal for any investor entering the fourth quarter down by ten. But the idea of mental toughness applies to investing as well as… Read More

Swensen’s Yale Endowment Model Not a One Size Fits all Investing Approach

The evolution of Yale University’s endowment fund has become something of legend, as described in a recent article in Chief Investment Officer. In the mid-80’s, as the story goes, the Ivy League university’s CIO David Swensen shifted the $25.4 billion fund from a traditional mix of primarily bonds and a few equities into “carefully selected alternative investments—hedge funds, private equity, and venture capital—using external managers to capture the so-called illiquidity premium.” It was a good… Read More

Zweig’s Market Survival Guide

There’s a lot of talk among investors about beating the market, but in a recent Wall Street Journal article  Jason Zweig suggests that many overlook the challenge of merely surviving it. “Of all the qualities an investor needs to succeed,” he writes, “stamina may be the most underrated.” Zweig cites Morningstar data showing that of the 525 U.S. stock mutual funds that existed thirty years ago, 223 are still operating today (of those, only six… Read More

Investing Principles: What Has Worked

For the next several weeks, our daily blogs will include information from a 1992 publication by the investment firm Tweedy, Browne Company LLC entitled What Has Worked in Investing: Studies of Investment Approaches and Characteristics Associated with Exceptional Returns. The booklet includes data from over fifty studies of share performance woven together with insights based on the firm’s five plus decades of industry experience as to which stock characteristics have provided the best returns over… Read More

Debating with the Oracle of Omaha

It’s tough to argue with one of the most legendary investors of all time, but Paul Merriman (founder of Seattle-based Merriman Wealth Management) apparently takes exception with some of Warren Buffett’s principles, particularly as they relate to investors in retirement. In a recent MarketWatch article, Merriman outlines his interpretations and gripes with seven Buffett principles: Hold plenty of cash to withstand financial challenges and don’t be afraid to use it for “lucrative investment opportunities.” According… Read More

Every Crisis is Different

It would be great if we could extract lessons from every financial crisis and then apply those lessons to avert future crises. Alas, writes Morningstar columnist John Rekenthaler, “The market’s turning points are never evident until after they have occurred.” That’s not to say, however, that some don’t read the writing on the wall and act accordingly. Rekenthaler writes, “Investors of various backgrounds figured out the housing bubble before it popped. Many more anticipated the… Read More

The Fool’s Housel on Brexit: Hurry Up and Wait

Thursday’s vote by the U.K. to leave the European Union has precipitated a host of commentary across countless channels. Last Friday, Morgan Housel of The Motley Fool offered frank advice about what investors should be doing. And that is…nothing. By voting to leave the EU, Housel says, the U.K. has ceded to France its title as the world’s fifth largest economy. But as far as The Motley Fool is concerned, the path is clear. “We’re… Read More

Buy and Hold, Then Hold Some More

The old adage “if it ain’t broke, don’t fix it” can apply to many situations, and perhaps the world of investing is among them. A recent article in Investment News discussed the strong performance of the Voya Corporate Leaders Trust (LEXCX), a fund born during the Great Depression. In 1935, its founders bought the 30 largest companies (ruling out financials due to an understandable distrust of the sector). They believed that if a company could… Read More