Morningstar Advisor - Fall 2008 - (Page 45) Morningstar Conversation Rooted in Buffett, Going for Growth By Kunal Kapoor Legg Mason manager Robert Hagstrom uses the value propositions of Warren Buffett to buy growth stocks. It’s been a tough stretch for the investment team at Legg Mason. While the headlines have been filled with banter relating to the falling fortunes of the legendary Bill Miller, his colleague Robert Hagstrom has not had an easy go of it, either. Hagstrom, who manages the Legg Mason Growth Trust LMGTX and has written books about Warren Buffett, runs a concentrated portfolio that’s lately been hit hard because of its financials exposure. We visited Hagstrom on Aug. 25 at Legg Mason in Baltimore to see how his investing philoso- phy has led him to some of the market’s most unloved areas—especially as a growth manager. We also spoke with him about the portfolio’s exposure to areas such as technology, which has also struggled lately. The interview has been edited for clarity and length. Kunal Kapoor: You’re well-known for having Robert Hagstrom: We wrote The Warren Buffett Way back in 1994 and started the mutual fund in 1995. I was a sole proprietor, running a very small shop. It became very clear to me that you needed a lot of support to run a mutual fund well. We didn’t have a marketing department. We didn’t have client service. We were a 1-800 number. I was good friends with Bill Miller, and he threw me a lifeline in late 1998. He asked if I’d come and run a growth fund for Legg Mason. I have a great respect for Bill, who I think is a written several books, and when a lot of people hear who you’ve written about—Warren Buffett—they’re surprised to know that you run a growth fund. MorningstarAdvisor.com 45 http://www.MorningstarAdvisor.com
Table of Contents Feed for the Digital Edition of Morningstar Advisor - Fall 2008 Morningstar Advisor - Fall 2008 Contents New on MorningstarAdvisor.com Letter from the Editor Contributors Inbox Are You Preparing for Higher Taxes? State of Financials Oracles of Alabama Investment Briefs Managers’ Investment Secrets Revealed Conformity Becomes a Growing Concern at American Gimme Shelter Location, Location, Location Rooted in Buffett, Going for Growth Keeping Little Company Away from the Numbers Consumer Confidence What about Natural Gas? TIPS to Beat Back Inflation Investing in Hidden Assets Funds That Have an Edge Come Tax Time Mutual Fund Analyst Picks 50 Most Popular Equity ETFs Undervalued Stocks Most Popular Variable Annuities New at Morningstar One for You, 19 for Me Morningstar Advisor - Fall 2008 Morningstar Advisor - Fall 2008 - Morningstar Advisor - Fall 2008 (Page Cover1) Morningstar Advisor - Fall 2008 - Morningstar Advisor - Fall 2008 (Page Cover2) Morningstar Advisor - Fall 2008 - Morningstar Advisor - Fall 2008 (Page 1) Morningstar Advisor - Fall 2008 - Morningstar Advisor - Fall 2008 (Page 2) Morningstar Advisor - Fall 2008 - Contents (Page 3) Morningstar Advisor - Fall 2008 - Contents (Page 4) Morningstar Advisor - Fall 2008 - Contents (Page 5) Morningstar Advisor - Fall 2008 - New on MorningstarAdvisor.com (Page 6) Morningstar Advisor - Fall 2008 - New on MorningstarAdvisor.com (Page 7) Morningstar Advisor - Fall 2008 - New on MorningstarAdvisor.com (Page 8) Morningstar Advisor - Fall 2008 - Letter from the Editor (Page 9) Morningstar Advisor - Fall 2008 - Contributors (Page 10) Morningstar Advisor - Fall 2008 - Inbox (Page 11) Morningstar Advisor - Fall 2008 - Are You Preparing for Higher Taxes? (Page 12) Morningstar Advisor - Fall 2008 - Are You Preparing for Higher Taxes? (Page 13) Morningstar Advisor - Fall 2008 - State of Financials (Page 14) Morningstar Advisor - Fall 2008 - State of Financials (Page 15) Morningstar Advisor - Fall 2008 - State of Financials (Page 16) Morningstar Advisor - Fall 2008 - Oracles of Alabama (Page 17) Morningstar Advisor - Fall 2008 - Oracles of Alabama (Page 18) Morningstar Advisor - Fall 2008 - Oracles of Alabama (Page 19) Morningstar Advisor - Fall 2008 - Oracles of Alabama (Page 20) Morningstar Advisor - Fall 2008 - Investment Briefs (Page 21) Morningstar Advisor - Fall 2008 - Investment Briefs (Page 22) Morningstar Advisor - Fall 2008 - Investment Briefs (Page 23) Morningstar Advisor - Fall 2008 - Investment Briefs (Page 24) Morningstar Advisor - Fall 2008 - Investment Briefs (Page 25) Morningstar Advisor - Fall 2008 - Managers’ Investment Secrets Revealed (Page 26) Morningstar Advisor - Fall 2008 - Managers’ Investment Secrets Revealed (Page 27) Morningstar Advisor - Fall 2008 - Managers’ Investment Secrets Revealed (Page 28) Morningstar Advisor - Fall 2008 - Managers’ Investment Secrets Revealed (Page 29) Morningstar Advisor - Fall 2008 - Conformity Becomes a Growing Concern at American (Page 30) Morningstar Advisor - Fall 2008 - Conformity Becomes a Growing Concern at American (Page 31) Morningstar Advisor - Fall 2008 - Conformity Becomes a Growing Concern at American (Page 32) Morningstar Advisor - Fall 2008 - Conformity Becomes a Growing Concern at American (Page 33) Morningstar Advisor - Fall 2008 - Conformity Becomes a Growing Concern at American (Page 34) Morningstar Advisor - Fall 2008 - Conformity Becomes a Growing Concern at American (Page 35) Morningstar Advisor - Fall 2008 - Gimme Shelter (Page 36) Morningstar Advisor - Fall 2008 - Gimme Shelter (Page 37) Morningstar Advisor - Fall 2008 - Gimme Shelter (Page 38) Morningstar Advisor - Fall 2008 - Gimme Shelter (Page 39) Morningstar Advisor - Fall 2008 - Location, Location, Location (Page 40) Morningstar Advisor - Fall 2008 - Location, Location, Location (Page 41) Morningstar Advisor - Fall 2008 - Location, Location, Location (Page 42) Morningstar Advisor - Fall 2008 - Location, Location, Location (Page 43) Morningstar Advisor - Fall 2008 - Location, Location, Location (Page 44) Morningstar Advisor - Fall 2008 - Rooted in Buffett, Going for Growth (Page 45) Morningstar Advisor - Fall 2008 - Rooted in Buffett, Going for Growth (Page 46) Morningstar Advisor - Fall 2008 - Rooted in Buffett, Going for Growth (Page 47) Morningstar Advisor - Fall 2008 - Rooted in Buffett, Going for Growth (Page 48) Morningstar Advisor - Fall 2008 - Rooted in Buffett, Going for Growth (Page 49) Morningstar Advisor - Fall 2008 - Rooted in Buffett, Going for Growth (Page 50) Morningstar Advisor - Fall 2008 - Rooted in Buffett, Going for Growth (Page 51) Morningstar Advisor - Fall 2008 - Rooted in Buffett, Going for Growth (Page 52) Morningstar Advisor - Fall 2008 - Rooted in Buffett, Going for Growth (Page 53) Morningstar Advisor - Fall 2008 - Keeping Little Company (Page 54) Morningstar Advisor - Fall 2008 - Keeping Little Company (Page 55) Morningstar Advisor - Fall 2008 - Keeping Little Company (Page 56) Morningstar Advisor - Fall 2008 - Keeping Little Company (Page 57) Morningstar Advisor - Fall 2008 - Away from the Numbers (Page 58) Morningstar Advisor - Fall 2008 - Away from the Numbers (Page 59) Morningstar Advisor - Fall 2008 - Away from the Numbers (Page 60) Morningstar Advisor - Fall 2008 - Away from the Numbers (Page 61) Morningstar Advisor - Fall 2008 - Consumer Confidence (Page 62) Morningstar Advisor - Fall 2008 - Consumer Confidence (Page 63) Morningstar Advisor - Fall 2008 - Consumer Confidence (Page 64) Morningstar Advisor - Fall 2008 - Consumer Confidence (Page 65) Morningstar Advisor - Fall 2008 - Consumer Confidence (Page 66) Morningstar Advisor - Fall 2008 - Consumer Confidence (Page 67) Morningstar Advisor - Fall 2008 - Consumer Confidence (Page 68) Morningstar Advisor - Fall 2008 - What about Natural Gas? (Page 69) Morningstar Advisor - Fall 2008 - What about Natural Gas? (Page 70) Morningstar Advisor - Fall 2008 - What about Natural Gas? (Page 71) Morningstar Advisor - Fall 2008 - What about Natural Gas? (Page 72) Morningstar Advisor - Fall 2008 - TIPS to Beat Back Inflation (Page 73) Morningstar Advisor - Fall 2008 - TIPS to Beat Back Inflation (Page 74) Morningstar Advisor - Fall 2008 - TIPS to Beat Back Inflation (Page 75) Morningstar Advisor - Fall 2008 - Investing in Hidden Assets (Page 76) Morningstar Advisor - Fall 2008 - Investing in Hidden Assets (Page 77) Morningstar Advisor - Fall 2008 - Funds That Have an Edge Come Tax Time (Page 78) Morningstar Advisor - Fall 2008 - Funds That Have an Edge Come Tax Time (Page 79) Morningstar Advisor - Fall 2008 - Funds That Have an Edge Come Tax Time (Page 80) Morningstar Advisor - Fall 2008 - Funds That Have an Edge Come Tax Time (Page 81) Morningstar Advisor - Fall 2008 - Mutual Fund Analyst Picks (Page 82) Morningstar Advisor - Fall 2008 - Mutual Fund Analyst Picks (Page 83) Morningstar Advisor - Fall 2008 - Mutual Fund Analyst Picks (Page 84) Morningstar Advisor - Fall 2008 - Mutual Fund Analyst Picks (Page 85) Morningstar Advisor - Fall 2008 - 50 Most Popular Equity ETFs (Page 86) Morningstar Advisor - Fall 2008 - 50 Most Popular Equity ETFs (Page 87) Morningstar Advisor - Fall 2008 - Undervalued Stocks (Page 88) Morningstar Advisor - Fall 2008 - Undervalued Stocks (Page 89) Morningstar Advisor - Fall 2008 - Undervalued Stocks (Page 90) Morningstar Advisor - Fall 2008 - Undervalued Stocks (Page 91) Morningstar Advisor - Fall 2008 - Most Popular Variable Annuities (Page 92) Morningstar Advisor - Fall 2008 - Most Popular Variable Annuities (Page 93) Morningstar Advisor - Fall 2008 - Most Popular Variable Annuities (Page 94) Morningstar Advisor - Fall 2008 - New at Morningstar (Page 95) Morningstar Advisor - Fall 2008 - One for You, 19 for Me (Page 96) Morningstar Advisor - Fall 2008 - One for You, 19 for Me (Page Cover3) Morningstar Advisor - Fall 2008 - One for You, 19 for Me (Page Cover4)
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