Jerome Dodson (Trades, Portfolio) is the founder of the $27.8 billion Parnassus Funds, where value investing is steered by socially responsible principles. The result has been outstanding returns over decades, with his Endeavor Fund gaining an annualized 12.26% since inception vs. 9.38% for the S&P 500.
In a podcast interview with GuruFocus this week, Dodson discussed his view of investing, including the key valuation criteria a stock must have for acceptance into his concentrated portfolio and why ethical management is so critical. He also shared why he invested in certain stocks, including Starbucks (SBUX, Financial), Alphabet (GOOGL, Financial), Qualcomm (QCOM, Financial) and Micron Technology (MU, Financial).
For his market outlook, Dodson explained why investors should welcome the return of volatility in markets as lower interest rates and trade battles strike. While he has had difficulty finding stocks to buy in an ever-rising market, he is excited to see lower prices.
Dodson’s Endeavor Fund portfolio at the end of the second quarter held 32 positions, with 24% in information technology and 23% in health care stocks as the largest sectors represented.
Listen to the podcast here.
