FYI: (I will link episode as soon as it becomes available, early Saturday morning.)
Regards,
Ted
September 21, 2017
Dear WEALTHTRACK Subscriber,
As we all know, stock picking is really out of favor right now. Index funds have been garnering most of the headlines because of their low costs and the fact that the S&P 500, the most popular stock market index by far with investors, has been outperforming the vast majority of actively managed funds for well over a decade. The giant sucking sound of money leaving traditional mutual funds and pouring into passive index funds has reached an ear splitting crescendo.
If you are a contrarian thinker this almost one directional flood into passive strategies raises some questions. First of all, is beating an index or even being in one the “be-all-end-all” of investing? Think back to the red hot NASDAQ Composite Index at the peak of the tech bubble in 2000. Funds that didn’t keep up suffered massive outflows. The NASDAQ then proceeded to decline 78% in less than three years. Many of the funds investors had abandoned proceeded to outperform that index for years.
At any given moment some index somewhere will be outperforming the average manager, and index for that matter. Another key question is can the herd mentality, which is frequently wrong over multi-year periods, be right this time? Or is there now more value and safety to be found among some active strategies?
This week’s WEALTHTRACK guests believe there is. We’ll be joined by Christopher Davis, a
third-generation money manager, Chairman of Davis Advisors and Portfolio Manager of several of the Davis Funds, which have a nearly 50 year history of disciplined value investing. Chris took over its flagship New York Venture Fund in 1997 when his father, Shelby Davis stepped down.
Since its 1969 inception New York Venture has beaten the S&P 500 62% of the time in one year periods, 66% of the time in 5 year increments, 86% in ten year periods and 100% in 20, 30 and 40 years. New York Venture and it’s no load version, Selected American Shares have had a tougher time in recent years. They beat the S&P 500 last year but underperformed it in six of the last ten, although they made money in all but two of those years.
Danton Goei joined New York Venture and Selected American Shares asCo-Manager in 2014. He has been with Davis Advisors for nearly 20 years and singlehandedly runs some of their top performing funds including the Davis Global Fund. Rated 4-star by Morningstar, Davis Global has beaten its benchmark and category over multiple year periods since its 2004 inception.
I should also add that the Davis Funds are highly regarded for their shareholder friendly policies including reducing expenses and recently introducing actively managed ETFs to give investors more options.
On this week’s show, Davis and Goei will also share their “One Investment” ideas for a long-term portfolio. If you are unable to join us for the program on television, you can watch it on our website, WealthTrack.com, starting over the weekend. If you’d like to see it earlier, it is available to our PREMIUM subscribers right now. We also have an EXTRA interview (exclusively on our website) with Davis and Goei about the launch of the Davis Funds’ three actively managed ETFs.
Another viewing option is you can take WEALTHTRACK with you on your commute or travels. You can now find the WEALTHTRACK podcast on TuneIn, Stitcher, and SoundCloud, as well as iTunes. Find out more on the WEALTHTRACK Podcast page.
As always, thank you for watching! Have a great weekend and make the week ahead a profitable and productive one.
Best Regards,
Consuelo
Video Clip:
M*: Davis Family Of Funds:
http://quicktake.morningstar.com/fundfamily/davis-funds/0C00001YWZ/fund-list.aspxM* Snapshot DGFAX:
http://www.morningstar.com/funds/XNAS/DGFAX/quote.htmlLipper Snapshot DGFAX:
http://www.marketwatch.com/investing/fund/dgfaxDGFAX Is Ranked #16 In The (WS) fund Category By U.S. News & World Report:
https://money.usnews.com/funds/mutual-funds/world-stock/davis-global-fund/dgfax 
