Dr. Danoff has extensive experience in Urinary Conditions and Urinary Calculi & Removal. So, I try to stay within my own circle of competence. He runs Fidelity's Contrafund. So, it's a little easier. At some point, somebody said, You really should go to a lunch and meet Ryanair. And I said, Really? And they're the low-cost operator in Europe. . And if you're working all the time, then you're probably missing what's happening in the world. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. In 2015, Danoff's 25-year solo management became an issue of concern as Fidelity had not named a co-manager for Contrafund. Finally, we'd love to get your feedback. Our guest this week is Will Danoff. And so far, we've done well. Why haven't you done those things? Will runs a number of Fidelity equity strategies, best known of which is Fidelity Contrafund, a mutual fund he has been managing since September 1990. If you liked what you heard, please subscribe to and rate The Long View from Morningstar on iTunes, Google Play, Spotify, or wherever you get your podcast. And we can also monitor all of these companies overseas. I've invested less over the last year or two than I feel like I did earlier on. Soundtrack: Kingsman: The Golden Circle. I do think there are owner/operator management teams that tend to do the right thing over time. This week, we speak with Fidelity's Will Danoff, who manages the firm's storied Contrafund.The large-cap growth fund has $139 billion in assets under management. And ideally you're asking good questions to learn as much as possible about an industry, about that particular company, and about that particular executive. But again, I'm trying to at least pay attention and trying to learn and, as I said, if you meet with management, you take good notes and say, What are you trying to accomplish? And then you go back after a year and say, What have you accomplished? I'm working for the shareholders. Will Danoff joined Fidelity as an equities analyst in 1986 after finishing an MBA at the Wharton School of the University of Pennsylvania. Investment return and principal value will fluctuate, so investors may have a gain or loss when shares are sold. Drew Angerer/Getty Images. But at the time, people weren't paying attention to airlines and Europe was sort of a no growth, low growth space. How did the new acquisition in Europe go? Let's say, a 50-basis-point or 100-basis-point bet immediately. Often, that executive will figure out what they want to do for six months. So, if I had to guess, I'm going to spend less time with privates in the future. Maybe I have a little more experience because I've been managing Contra for almost 30 years, but the access to information has changed meaningfully. 5 years: Fidelity Contrafund 8.52%, S&P 500 Index 9.42%. That's a really good point. I mean, I was the retail analyst at Fidelity in the mid 80s. And there are a lot of really good companies out there, but what I'm trying to do, as we talked about earlier, is find the exceptional companies and trying to bet bigger on the exceptional ones. And it was again, it was a Friday afternoon, maybe in the summer, and there weren't that many people there. And again, it goes back to who you are, and maybe certain money managers have to justify their higher fees by being out there pressing management, but you know, it's a very good point, Christine. Maybe it's growing faster than people think. Consistently outperforming the market is very hard. And I was lucky enough to start at Fidelity and work with Peter Lynch and some of the other great fund managers here, Bruce Johnstone and George Vanderheiden. Ptak: And so does that tend to be a function of kind of how you would assess opportunity costs associated with entering into a new idea? Its leaves have a thick waxy coating, are nearly circular with a notch at the . But again, circle of competence to me means you know your companies well, but you also know certain sectors particularly well. And I try to organize my day, and in the end, I say, Is this in the best interest of the shareholders? I mean, let's face it, Morningstar is still founder-led, Fidelity is a family owned company. Prior to becoming a portfolio manager, Will served as a retail analyst at Fidelity and for a time as assistant portfolio manager at Fidelity Magellan. During his nearly three-decade tenure at Contrafund, Will has trounced the market indexes and, even more remarkably, managed to maintain the fund's performance . He's a graduate of Harvard University and earned his MBA at the Wharton School of the University of Pennsylvania. Letters, Fidelity Investments TV commercial, Securities and Exchange Commissions Investment Company Liquidity Risk Management Program. Let's then call the company together. William Danoff: Thanks, Jeff. But historically, I have found that if you can identify people that you trust, that are extremely knowledgeable about their industry and enthusiastic about their company, and in some cases, ideally, are founders of the companyand, therefore, the company is an expression of who they are and what they are and they really want to grow the company--then that's the perfect situation, especially if it's a good business and they have a differentiated product offering and a great value proposition. You know, we've been very lucky not to have to worry about, Oh my God, there's a new owner. Thank you again, so much, for joining us on The Long View. So, I think, just like I'm trying to assess managements, you and your colleagues have to decide which fund managers are in it because they love the business and they want to do the very best job they can do for shareholders. Danoff: That's a really good question, Jeff. And up until recently, they were growing; smartphones as a category aren't growing as much as in the past, but other tech companies are still growing fast, generating free cash flow, and very profitable high margins. How did the growth initiative in China go? And, again, this is an iterative process. Copyright 2023 Dow Jones & Company, Inc. All Rights Reserved. And I think one advantage of being so large is that you think a lot more about making an investment before you actually invest. Already a member? We've been very lucky that in the last 10 years, these mega-cap companies have been able to continue to grow. And that the key was to sweat your assets and fill your planes out by charging a low price. William Danoff is currently vice president at Fidelity Investments. Investments in foreign securities involve greater risk than U.S. investments. Verify your identity, personalize the content you receive, or create and administer your account. We want to look before we leap. [5] Should Danoff retire or become incapacitated without a co-manager or succession plan, Contrafund might face major redemptions from shareholders and lose its position in many large retirement plans which typically require at least three years of manager tenure. Eclipsing the market over decades is astonishing. I'd say a healthy research department is a joint effort. So, I look at the fund. And the entrepreneur and founder is able to build a team, and I think before it's all over, maybe it will be wise to wait until the company is public. I mean, Apple is the largest company in the world; they're very profitable. So nowadays that can all be done electronically, immediately. They have this new app that's growing like a weed, and we need to load the boat, back up the truck. You might say, Well, I've never heard of ABC app, and I've never heard of this company. Again, we're all a product of where we started in the business. Ptak: Well, I think that we could talk to you and ask questions of you for hours. I'm Jeff Ptak, director of manager research for Morningstar Research Services. Thanks for joining us on The Long View. Danoff: That's a really good question, Christine. So, I raced to an IPO meeting, and, in the olden days, the lunch was called for noon, but things really got started about 12:35. Plus, Danoff has led this fund for nearly a quarter-century, when the average manager tenure is 5 years. Discover William Danoff's Biography, Age, Height, Physical Stats, Dating/Affairs, Family and career updates. Show The Long View, Ep Will Danoff: Succeeding at Scale - Jan 29, 2020 Fidelity Contrafund's longtime star manager on why he runs money, how his definition of "edge" has evolved, the best way to engage with analysts and company management, and more. No patient rating & comments. But then, Christine, what really happens and where the magic happens is, I will say, That sounds like a really interesting idea. Mitchell Danoff is 71 years old and was born on 07/24/1951. If you think ABC Company is the best in your group, I'm willing to accept that. A letter from Dr. Danoff to readers: My name is Dr. Dudley Danoff. Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time. Tom Ford. If management asks once in a while about buybacks versus dividends, I will express a personal opinion. These are behemoth companies. Adam Danoff Net Worth Adam Danoff Net Worth 2022, Age, Height, Relationships, Married, Dating, Family, Wiki Biography. And if you haven't seen it, it's a very good letter. I do have a long tail of the bench that hopefully are the junior varsity where, as I said earlier, I think I have a good idea but I need to monitor it more closely. An error has occurred, please try again later. So I would say they're higher risk. Here are my names, and I like XYZ railroad because the group's trading at 14 times earnings, and this ones trading at 11 times earnings. And I might say, Wow, that's interesting. They hand off responsibility for security research and talking to management. For a long time, I was a little late to the software-as-a-service sector. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. Our guest this week is Will Danoff. Will runs a number of Fidelity equity strategies, best known of which is Fidelity Contrafund, a mutual fund he has been managing since September 1990. And again, private companies are an opportunity to learn and, if they're the right private company, an opportunity to invest. And that would be a special business that delights their customer, owner/operator, free cash flow generative, high return. Even in energy, which is way out a favor right now, there may be an opportunity over time. We'll widen the aperture, so to speak, and talk about sort of the general theme of focus. You're well known in investing circles. You know, I've been a shareholder of Google, now Alphabet, since the IPO in 2004. You think about your own life: If you're strong in one area, you don't necessarily want to change, and managements sometimes have difficulty changing because they've been so successful. So, Fidelity can monitor virtually every public company in the U.S. We can monitor every industry in the world. And I'm seeing 25 or more companies a week. Danoff's Contrafund mutual fund outperformed the S&P 500's trailing one year, three year, five year, ten year and fifteen year total returns, making the mutual fund one of only three to accomplish such an achievement still in the marketplace as of the beginning of the year 2014 (according to Morningstar Incorporated). On the other hand, I would say that a good individual investor, a sophisticated individual investor, can go on to YouTube and hear interviews with the great CEOs of the biggest companies in the world. So, you know, I can monitor what's happening and review what's happening regularly. Maybe another competitor is doing a better job. During his ne.- Hren Sie Will Danoff: Succeeding at Scale von The Long View sofort auf Ihrem Tablet, Telefon oder im Browser - kein Herunterladen erforderlich. And that certainly has been a modest change in the life of a mutual fund manager and a change in the mutual fund industry in the last decade or so. But you and your listeners--you're sophisticated investors. He has crossed all the competition over 30 years. So therefore, you are trusting management teams and experts in certain industries to guide you, and hopefully I'll understand the financial ramifications if the company is successful, and I can make an assessment if I think the scientists or the technologists are going to be able to execute on their plan, and every industry is a little cyclical. Little late to the software-as-a-service sector to speak, and I 've never heard of ABC,. U.S. Investments do think there are owner/operator management teams that tend to do right!, a 50-basis-point or 100-basis-point bet immediately will danoff bio management, circle of competence me. Assets and fill your planes out by charging a low price Dating, and. Adam Danoff Net Worth adam Danoff Net Worth 2022, Age, Height, Physical Stats,,... Of manager research for Morningstar research Services 'm seeing 25 or more companies a week x27 ; s,., what have you accomplished companies well, I think that we could talk you! 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