Morningstar Advisor - Spring 2008 - (Page 13) Will Danoff Fidelity Contrafund FCNTX, Fidelity Advisor New Insights FNIAX Bill Gross PIMCO Total Return PTTDX, Harbor Bond HABDX James Moffett UMB Scout International UMBWX Working with my research team at Fidelity is one key to my success. They help me monitor all of the potential investment opportunities in all industries, of all sizes, everywhere in the world. I work hard to look at as many ideas as possible, and I am flexible enough to buy many different types of investments. Be the investor that you are. Learn from your mistakes, successes, and from other successful investors. I try to upgrade my investments when the broad market falls. Our longer-term approach. It takes you out of emotional mode and puts you into a more objective mood that lends itself to better investing. Our long-term focus on quality and keeping a balance in the portfolio. Capitalism is a going enterprise, meaning it will survive. So don’t become totally despondent. But it will be changing somewhat. Capitalism of the past 10 years was the Wild Wild West; we’re returning to days of law and order. We’re not jumping into the deep end at the moment. In the second half of the year, maybe high-yield bonds, bank loans that everyone talks about, riskier assets that are being tossed away. Bank stocks are attractive. Bank of America BAC, Wachovia WB are yielding 6% to 7%. As a small investor, I’d probably go there first and then look to the high-yield debt market. Anything that produces volatility. There are lots of hidden gremlins ready to bump their heads out of the ground any moment. 10 shares of McDonnell Douglas, when I was in high school. More interesting is when I was in the Navy in 1968 and bought Treasury bonds on margin. With $4,000 of my Navy earnings, I bought $40,000 worth of Treasuries. Two weeks later, I had Stick to your strategy. Remember that a lot of market return comes from being in the market at its major turning points. I’ve been looking more intensely in the health-care space, which should be relatively immune from the housing and mortgage crisis. Worldwide, there are interesting finance names out there. The trick is to find out which are the good ones and which are the bad ones. Also, we’re bottom-fishing in health care. I sleep well whenever I’m seeing lots of companies and busy looking for new ideas I like to think I have a sleep-easy portfolio. Time Warner, when their Atari division was hot in 1982. I should have sold when my friends started talking about how much they liked Coleco. Ford, when it went public in ‘56. lost all my money. Doctor or dentist. Lots of my family practice. I never liked blood, so I went to Wall Street. Nelson Mandela People of the Book, by Geraldine Brooks Rock star Art dealer Thomas Friedman The United States of Europe: The New Superpower and the End of American Supremacy, by T.R. Reid Anemic Barack Obama The Omnivore’s Dilemma, by Michael Pollan Squishy Potential for inflation Fragile Continued attempts to support a fragile economy both monetarily and fiscally. Clear skies. We’ll have a better idea of the new political leadership and where all the toxic paper is. MorningstarAdvisor.com 13 http://MorningstarAdvisor.com
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