Portfolio manager at Fidelity Investments, Joel Tillinghast, discusses his journey to Fidelity, investing strategies, and the importance of staying informed. He also explores the concept of data analysis, active vs passive investing, and achieving market-leading outcomes. Tillinghast shares insights on teaching the next generation of fund managers and reflects on the unpredictability of investing.
Invest in your own fund to display confidence in your investment strategy.
Learn from mistakes and adapt analytical methods based on experience.
Be prepared for unexpected events and outcomes in the world of investing.
Deep dives
The importance of being invested in your own fund
One of the key pieces of advice given is the importance of being invested in your own fund. The speaker emphasizes that they have a high percentage of their investments in their personal brokerage account and retirement account, displaying a strong belief in their own investment strategy and decisions.
Lessons learned from making mistakes
The speaker discusses the importance of learning from mistakes and being willing to recognize and fix them quickly. They mention a specific example of a stock they bought that ended up being a big loss, which led them to change their analytical method and focus more on aspects like free cash flow and being skeptical of analyst-adjusted earnings.
The unpredictability of the market
The speaker emphasizes that one of the key things they would have liked to know 40 years ago is that anything can happen in the world of investing. They cite examples such as the unexpected COVID-19 pandemic and the subsequent massive fiscal stimulus and inflation rates, highlighting the importance of being prepared for unexpected events and outcomes.
Advice for aspiring fund managers
The speaker advises aspiring fund managers to be aware that the job is demanding and requires a heavy commitment. They also suggest thinking about whether one is a value or growth investor and being conscious of one's behavioral habits that may hinder success. Overall, they encourage individuals to choose a highly paid glamorous profession if they are not ready for the demands of fund management.
The role of mentors in the field
The speaker acknowledges the mentors who have played a crucial role in their career, including Peter Lynch, Richard Sandor, and Bruce Johnstone. They highlight the importance of mentors for guidance and learning in the world of investing.
Barry speaks to Joel Tillinghast, a portfolio manager in the equity division at Fidelity Investments. Tillinghast co-manages Fidelity's Low-Priced Stock and Fidelity Series Intrinsic Opportunities funds, as well as portfolios for Canadian and Japanese investors. Tillinghast previously worked as an analyst covering coal, personal care, appliances, natural gas and tobacco at FMR Co. Before joining Fidelity in 1986, he served as a director of research and strategy at Bank of America Futures, a research economist at Drexel Burnham Lambert and an analyst for the Value Line Investment Survey.