Dennis Stattman, who has been one of the most successful fund managers in the world, recently reached the 25-year mark at BlackRock’s Global Allocation Fund. And in a piece for Nasdaq.com, BlackRock looked at seven of his tips for success.
Among Stattman’s pieces of advice: “Diversify, buy low, sell high, have a plan.” Having a plan can help you stay on track, “even when volatility tempts you to stray,” writes BlackRock.
Other key points from Stattman center on risk management and contrarian thinking. “Beware risking a lot to make a little. Be open to risking a little to make a lot,” he says. Stattman avoided dot-com stocks in the late 90s, realizing that they were too risky, a move that significantly helped his investors. Somewhat similarly, he says, “When markets are happy, think about what could go wrong. When markets are in despair, think about what could go right.”
Validea’s Top Five Gurus portfolio is up 16.1% annualized since its mid-2003 inception vs. 5.8% for the S&P 500. Check out its holdings here.