In yesterday’s blog post, we shared some insights from tenured money managers regarding the patience necessary for investment success. An article in last weeks’ InvestmentNews offered more feedback from this group of sage investors, which included; Ariel Fund’s John Rogers, Robert Bacarella of the Monetta fund, Mario Gabelli of Gabelli Asset Management Company and John Carey of the Pioneer fund.

When asked how they’ve managed to stay in the competitive world of fund management, here are their responses:

Gabelli: “We’re obsessed with studying our companies, reading annual reports.” He added, “We have knowledge that we’ve accumulated over an extended period of time on a variety of subjects. You stay focused and you read and read and read.”

Carey: “Persistence in an investment strategy is more important over the long term. That’s what works for clients and helps them meet their goals.”

Rogers: “I read constantly…Having that discipline, doing the same thing over and over again, makes you better.”

Bacarella: “Markets are more efficient now than at any time in history. I spend a lot of time trying to determine whether or not I can have a positive or negative variance—and when things go against you, you must cut losses.”

According to the article, most of these gentlemen believe that passive management is overrated. “Indexing is going to end the same way the internet bubble did—people own stocks because they’re in an index and for reasons that have nothing to do with fundamentals,” Rogers said. “The industry will go back to a better period of old-fashioned stock picking, and managers will not feel the need to be just like the indexers.”