Tags: fidelity | will danoff | market investing | wall street journal

WSJ: Fidelity's Will Danoff Is the $108 Billion Man Who Has Beaten the Market

WSJ: Fidelity's Will Danoff Is the $108 Billion Man Who Has Beaten the Market

(Dollar Photo Club)

By    |   Saturday, 22 October 2016 11:25 AM


 

One of the most successful money managers of our time may not be a household name, but he is literally living proof that despite all the technological advances in attempts to beat the marker in a march toward artificial intelligence, nothing can really beat the human mind.

Will Danoff, manager of Fidelity Investments’ $108 billion Contrafund, the biggest actively managed stock or bond mutual fund run by one person, contends that living and breath investment strategists have fundamental investing advantages that no machine will ever replace: the human touch. Meeting business executives and chief executive officers and pressing the flesh. Sitting down and talking, face to face.

Since Danoff took over on Sept. 17, 1990, Contrafund has averaged a 12.7% return annually, according to Morningstar, outperforming the S&P 500 index by 2.9 percentage points a year. "If you’d invested $10,000 in the fund then, you’d have had $231,207 at the end of last month; the same amount in the S&P 500 would have grown to $118,184," the Wall Street Journal reported.


“In that way, Mr. Danoff stands out — the rare big-company fund manager to best the indexes,” WSJ.com explained.
 

Danoff, 56, was trained by the formidable Peter Lynch, who managed Fidelity’s Magellan fund until 1990. “Peter believed in turning over more rocks than anybody else,” Danoff said in explaining his strategy of meeting and talking to executives and billionair CEOs.

“The more companies you see, the more opportunities you will find,” he said. “My ability to look beyond just the numbers … is something that can’t be replicated by a spreadsheet,” he said.


“I learn from shrewd executives about their businesses every day,” he said, “and this knowledge will help us make the right long-term investments for our shareholders.”

In his four or five daily meetings with managers, he sponges up insights about their companies and their suppliers, competitors and customers, as well as coming technological changes that could hurt or help a business, the Journal explained.

“By casting a wide net, and being flexible and willing to admit and learn from mistakes,” Danoff said, “active managers at big firms can beat the index over time.”

However, with all this great power also comes a responsibility to not let passion for materialism get the best of us. Regardless of however "beautiful" a human mind can be, one of these most respected voices of our time warns that greed might eventually be the downfall of our race.

Physicist Stephen Hawking recently said that money and our attitude toward wealth was a key factor in the outcome of the EU Brexit referendum, but it also is a warning that "envy and isolationism" threaten the future of humanity.

The June 23 Brexit vote was down to British attitudes towards wealth and money and that it was time for an "honest" debate about "the role that wealth does and doesn't play in our society," Hawking wrote in the U.K. Guardian newspaper.

"We are in perilous times. Our planet and the human race face multiple challenges. These challenges are global and serious – climate change, food production, overpopulation, the decimation of other species, epidemic disease, acidification of the oceans. Such pressing issues will require us to collaborate, all of us, with a shared vision and cooperative endeavor to ensure that humanity can survive," he wrote.

"We will need to adapt, rethink, refocus and change some of our fundamental assumptions about what we mean by wealth, by possessions, by mine and yours. Just like children, we will have to learn to share," he wrote.

He warned that "if we fail, then the forces that contributed to Brexit, the envy and isolationism not just in the U.K. but around the world that spring from not sharing, of cultures driven by a narrow definition of wealth and a failure to divide it more fairly, both within nations and across national borders, will strengthen," he wrote.

"We can and will succeed. Humans are endlessly resourceful, optimistic and adaptable. We must broaden our definition of wealth to include knowledge, natural resources, and human capacity, and at the same time learn to share each of those more fairly. If we do this, then there is no limit to what humans can achieve together."

Hawking, 74, who was diagnosed with amyotrophic lateral sclerosis at 21, is best known for his work regarding black holes, notes Biography.com, and his life was the subject of the 2014 movie "The Theory of Everything."

© 2020 Newsmax Finance. All rights reserved.


   
1Like our page
2Share
StreetTalk
One of the most successful money managers of our time may not be a household name, but he is literally living proof that despite all the technological advances in attempts to beat the marker in a march toward artificial intelligence, nothing can really beat the human mind.
fidelity, will danoff, market investing, wall street journal
739
2016-25-22
Saturday, 22 October 2016 11:25 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved