David Ellison learned a simple lesson from legendary mutual-fund manager Peter Lynch as a young bank analyst at Fidelity Investments in the 1980s: If things at a company are getting better, you want to own its stock.
When Abigail Johnson began her apprenticeship at Fidelity Investments 25 years ago, the Boston- based firm founded by her grandfather was the nation’s biggest mutual-fund company and star manager Peter Lynch was enjoying a performance streak at the Magellan Fund -- a 29 percent average return over 13 years -- that ranks among the best in the industry’s history.
It seems like for every doom-and- gloomer saying the U.S. stock market is headed for a 2000-style bubble burst, there’s an optimist behind them saying, “That’s nonsense -- and can I interest you in a flier on an IPO for an unprofitable Internet company?”
We're screening for tech leaders today. However, first a quick comment on the obvious -- Apple's multi-product announcement today at 1pm ET: Apple is trying desperately to prove it can still grow, and it needs to. The 64 analysts tracked by Bloomberg forecast earnings will decline 11 percent this year. Even if the company successfully introduces/markets/executes a low-priced iPhone for the Chinese market, the additional 40M unit sales will only add 10 percent to earnings next year, according to ISI's Brian Marshall. This boost would merely return earnings to last year's level.
Fidelity Investments, the mutual- fund firm best known for its star stock pickers since it was started almost seven decades ago, named former bond manager Charles Morrison to run its asset-management unit.
John Coumarianos of the Institutional Imperative is a prudent value guy. He wonders aloud in a recent blog post if I am too bullish?. He raises a number of interesting points via (mostly) valid criticisms.