Portfolio Lessons: Navigating Market Cycles
Вставка
- Опубліковано 27 вер 2024
- Part 2 of 2
Our rare interview with legendary investor Steven Romick, Co-Portfolio Manager of the FPA Crescent Fund, which he founded 30 years ago. Morningstar gives the gold-rated fund high marks for its focus on capital preservation and strong stewardship.
Since 1993, Crescent has generated equity-like returns with less risk than the overall market. Its nearly 10% annualized returns match the S&P 500 but with significantly less decline during downturns and faster recovery.
Earlier this year, Romick delivered the keynote at Morningstar's investment conference, reflecting on his 30 years of successful investing across multiple cycles.
We asked Romick to share insights and lessons learned navigating major crises like the tech bubble, financial crisis, COVID crash, and 2022's meltdown. Interestingly, he believes Crescent has survived by "first considering what can go wrong."
Hear Romick's wisdom on defensive investing, managing risk, contrarian thinking, and preparing for an uncertain future. It is a rare chance to learn from a legendary investor.
WEALTHTRACK Episode 2012 broadcast on September 15, 2023
More Info: wealthtrack.co...
Bookshelf: Security Analysis, Seventh Edition: Principles and Technique
amzn.to/3szbiSH
![Investment Strategies: Conflicting Trends [2023]](http://i.ytimg.com/vi/7fOZXoT-l1s/mqdefault.jpg)
Always quality contents. Thanks :)
Perhaps unintentionally he makes a great point about Warren Buffet. He admits being behind the curve compared with Berkshire by years. On top of that, there’s the problem of fund fees whittling down returns. Although he’s done ok, his fund charges 1.09% annually whereas Berkshire doesn’t. Over his 30 year career, most investors (and likely this fund manager too) would have probably been better off just dumping all incoming money into Berkshire.
I enjoyed the discussion but not sure if his performance warrants celebration.
Play the cello
For those who just buy the market (passive investment), and buy and hold, I did not find a great deal actionable in his presentation.
For a passive investor, what do you expect to gain from listening to a successful active manager, stock tips? 😂😂😂 Or are you just pretending to be "passive"?
How do they calculate returns if there is new money coming in every year? If you had a million that was in 1993, today you can calculate the returns. But over 30 years there are always new money from new customers buy in the funds so today's total 8 million is not 7 millions gain. Every manager talks like they can predict and bet on the right future. My first finance professor in MBA says he can't predict the future otherwise he would not be a professor. Fund manager is in a slight better position because they study market and companies full time, however there is a fee too. But if you don't plan for active trading, why do you need that full time.
So... instead of this value investor focusing on balances sheets, he has shifted his focus to the uncertain projections of future earnings narratives? It makes me wonder how much of this "investor learning" is actually just Pavlovian responses to Federal Reserve interventionalist bailouts, which over the last 15+ years has come to dominate market sentiment.
😇👑🌍🌎🌏💚
A letdown with few to any specific ways to help my portfolio. No bottom up or top down ideas to help me personally. Have the gurs to name names to illustrate your convictions and approach
Another fund manager that has failed to beat the S&P over almost all time periods. Not sure why anybody would invest with them.
10% per year? is it the SP500 passive index fund delivered as well? I just wondering what value does he deliver?
Presumably his fund was able to deliver S&P-like return but with less volatility.
He can't give long-term recommendation at least he should be able to give short term recommendation, what is he buying or selling today? Or last time recently? Don't try to avoid questions. He avoids the question so he can prevent later he is proven wrong. If he sticks with long term investment principles, he should be able to answer what "he thinks today" is good for next 30 years. Or he can provide any term short term what he believes in good investment if he thinks it changes quickly. What does he buy sell today or latest? Or do nothing?
Buffett's generic long term advice would say "always bet on America" (or never bet against America). But I'm not so sure that advice can hold indefinitely.