Fundamental stock pickers select securities by looking at valuations, following the 1934 book “Security Analysis” by Benjamin Graham and David Dodd, the fathers of value investing. Berkshire Hathaway Inc. Chief Executive Officer Warren Buffett studied under Graham at Columbia University. Peter Lynch, who returned 29 percent a year as manager of Fidelity’s Magellan Fund from 1977 to 1990, said it was futile to predict interest rates or the economy.
But the financial crisis of 2008-2009 made quite many renowned Investment Gurus change their minds, among them is Chuck Akre, who is featured in a Bloomberg report entitle Akre Adding Cash Joins Stock Pickers Looking Beyond Valuations.
Excerpt:
Read the full article to find out the views of Thomas Russo, David Einhorn, Robert Rodriguez on this subject here.
Check out Chuck Akre's complete stock portfolio by click on his name.
But the financial crisis of 2008-2009 made quite many renowned Investment Gurus change their minds, among them is Chuck Akre, who is featured in a Bloomberg report entitle Akre Adding Cash Joins Stock Pickers Looking Beyond Valuations.
Excerpt:
Chuck Akre beat 99 percent of peers over more than a decade picking stocks based on price and ignoring much of what happened in the economy and government. He changed his approach after his fund declined 34 percent in 2008.“It’s not clear how our economic and political situation will unfold so you have to bear more things in mind today,” said Akre, 67, who last year left FBR Funds and started his own Akre Focus Fund. “We need to do a better job of integrating our world view than we have in the past.”
Akre joins a handful of “bottom-up” stock pickers who say they can no longer afford to tune out the larger economic picture after underestimating the financial crisis. Retail investors have pulled $180 billion from U.S. stock mutual funds since 2007, when the crisis started in subprime mortgages before spreading across the global economy and financial markets.
Read the full article to find out the views of Thomas Russo, David Einhorn, Robert Rodriguez on this subject here.
Check out Chuck Akre's complete stock portfolio by click on his name.
