“The most important thing is value,” says Howard Marks in The Most Important Thing. Seeking out value is the best way to generate better returns in the stock market, in my opinion.
Besides seeking out undervalued equity by looking at the metrics of stocks, there are other alternatives. For readers who know that value investing is the best way to invest but might not have the time or interest to research individual stocks, a mutual fund run by a value investor might be the next best option. In this article, I will explore the option of investing in a mutual fund. For investors who might not be able to invest in U.S. Mutual Funds, we can adopt the strategy of knowing the money managers who run the funds and following the gurus by buying into stocks where they have the highest conviction. Of course, the purchase can only be done after sufficient research on your own.
What is A Mutual Fund?
As defined by Investopedia, a mutual fund is an investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds and other assets. Mutual funds are operated by money managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. An advantage of the mutual fund is that it gives small investor access to a diversified portfolio of equities managed by famed value investors.
Below are stocks that are held by the top five money managers:
1. Oracle Corporation (ORCL, Financial)
2. Bank of America Corporation (BAC, Financial)
3. MBIA Inc. (MBI, Financial)
4. Research in Motion Ltd. (BBRY)
5. Procter & Gamble Co. (PG, Financial)
To read the rest of the article, click here
Besides seeking out undervalued equity by looking at the metrics of stocks, there are other alternatives. For readers who know that value investing is the best way to invest but might not have the time or interest to research individual stocks, a mutual fund run by a value investor might be the next best option. In this article, I will explore the option of investing in a mutual fund. For investors who might not be able to invest in U.S. Mutual Funds, we can adopt the strategy of knowing the money managers who run the funds and following the gurus by buying into stocks where they have the highest conviction. Of course, the purchase can only be done after sufficient research on your own.
What is A Mutual Fund?
As defined by Investopedia, a mutual fund is an investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds and other assets. Mutual funds are operated by money managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. An advantage of the mutual fund is that it gives small investor access to a diversified portfolio of equities managed by famed value investors.
Below are stocks that are held by the top five money managers:
1. Oracle Corporation (ORCL, Financial)
2. Bank of America Corporation (BAC, Financial)
3. MBIA Inc. (MBI, Financial)
4. Research in Motion Ltd. (BBRY)
5. Procter & Gamble Co. (PG, Financial)
To read the rest of the article, click here
