What Every Fidelity Investor Needs to Know by James Lowell
There are two reason I picked this book to read. First is I have family money invested in Fidelity funds. Second most important is that I think there is lot to be learned from mutual funds. While everyone is excited by hedge funds, the mutual funds have been in this game for long. Many of the good mutual fund managers have better track record than majority of hedge fund managers. So I read most books on mutual funds.
Many people might be familiar with James Lowell because of his columns in magazines. His Fidelity Investor newsletter offers a valuable service if you have large mutual fund portfolio.
This book by him is a comprehensive resource about Fidelity funds, their history, management structure, track record and various services offered by Fidelity. Large part of the book deals with explaining the Fidelity range of offering to lay investor.
The meat of the book is in later part where the author talks about how to design an investment strategy using Fidelity fund offerings. There are couple of key insights about Fidelity funds. The most important being that you should buy the manager , not the fund. Fund manager is the most important determinant of fund performance.Asset allocation is important but owning the wrong manager in your chosen asset allocation can make a big difference in your returns.
The other key insight is chasing performance works in Fidelity. So buying whichever fund has performed best in previous year is a winning bet. According to the authors database at Fidelity, Fidelity hot hands stay hot.
For mutual fund investors, the chapter on model portfolios for different risk reward profile offers good ideas on choosing relevant Fidelity funds. If you are Fidelity fund owner, this book is a valuable asset to improve your returns.
11 comments:
i am not sure, but aren't there lots of arguments/statistics saying that just indexing is fine?
Part of that is marketing myth crated by Index funds. If you have skill, you can beat index with mutual funds also. Plus in some cases like 401, you have limited choice.
That is how my dad has handled his 401K. He constantly moves money into whatever is getting hotter. He moved his funds into corporate real estate this summer which is up huge.
When everybody was down 25-75% in 2001-02, his portfolio was down 0.4%.
QQQQ--Would not be surprised to see dip tomorrow. Oil inventories may determine amplitude and time of recovery. Not seeing much of an edge beyond the longer term bullishness.
pradeep what does your research indicate about waves of high M&A activity?
Bearish . It happens usually at top.
Pradeep,
Do you think the current Dow Transport weakness can be attributed to oil fears?
If so, tomorrow can be a big day if oil inventories continue to slide or reverse after 3 straight weeks of declines.
dow transport weakness is attributed to slowing global economy by those in the know
If you chart the inventory data you see that it made a double top in line with Transport. The heavier driving around this time of the year puts pressure on reserves. The Transport Index is also at support and the 200-da.
My analysis says it is more likely that crude inventory will revert back towards 0 than continue to slide in the short term. That is bullish for the market near term if it is correct in addition to the technical condition of the Transport Index.
i am at a holiday party a work, and after like 10 beers, the dow transports look ok...
None of this matters if your time frames are small. Look for range expansion or volume expansion on either side.
To make correct hypotheis on day to day basis is high stress, high risk game.
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