What are you doing to defend your competitive position? And then also, What are you doing, about certain mega trends that we all are living with, the emergence of the Internet, more competition from low-cost countries and other big trends that we see over and over?. Danoff: I'm not sure of the percentage, Christine. The Fidelity Contrafund is an actively managed domestic equity fund that seeks long-term growth of capital and can be an appropriate core equity holding for investors seeking broad exposure to companies we think have "best-of-breed" qualities and are underappreciated by other investors. 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. Excited to be here. We so appreciate the time and insights you've shared with us and our listeners today. 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. As with any search engine, we ask that you not input personal or account information. Will. I mean, I was the retail analyst at Fidelity in the mid 80s. Our guest this week is Will Danoff. You may have a gain or loss when you sell your shares. And the analysts ideally are coming to me with their best ideas. In the biotech area--I took biology 40 years ago--so, I am way out of date. Growth of $10,000 invested in Contrafund versus S&P 500 Index, September 17, 1990 to December 31, 2022. We're thrilled to have him as our guest. Permanent link Fidelity Contrafund versus the S&P 500 index over five periods: 1 year, 3 years, 5 years, 10 years, and life of the portfolio. He has been married to Joan Grbach since 1988. That's a really good point. Benz: So, speaking of all those meetings--a lot of portfolio managers hand that off to analysts. But there's no denying this fund is enormous, which means buying small, fast-growing companies won't do it much good. But you know, you're not necessarily part of the zeitgeist. Since he took over on Sept. 17, 1990 . And so, one has to be very careful. Danoff: I think over time, maybe, you grow as an individual and you gain experience. And I only knew the name of the company. Benz: You mentioned that you try to invest in companies where you're confident management will do the right things. But how often, if ever, do you get involved with giving management your opinion about what you think they ought to do? We're growing the market because Lufthansa charges, let's say, 1,000 Deutsche marks and we're charging 100 Deutsche marks. Danoff received 46,154 Alibaba shares that cost $3,432, or 7 cents apiece, according to an annual report filed by his family's private charitable foundation. This chart is not intended to imply any future performance of the investment product. And being a very large fund has enabled me to have an unbelievably strong research department. There are obviously trade-offs. In addition to managing Contra, Mr. Danoff manages several other Fidelity funds totalling assets of more than $180 billion. The value of the fund's domestic and foreign investments will vary from day to day in response to many factors. Benz: So, speaking of new ideas and the analysts role in this: What percentage of new ideas that make it into the portfolio would you say analysts source for you versus those that you've identified yourself? She had some amateur wins of note in the 1940s, and played LPGA events into the 1970s. It is not possible to invest in an index. So nowadays that can all be done electronically, immediately. I mean, if you think about it, Jeff and Christine and listeners, maybe 10 years ago, you had one smartphone-type device. He's beat large-cap growth by 400 basis points. So, we have this great opportunity, virtually every day, I can meet with executives from five or six companies, maybe a few less on a quiet day. He has crossed all the competition over 30 years. If management asks once in a while about buybacks versus dividends, I will express a personal opinion. This year, he marks three decades of managing the $131 billion Fidelity Contrafund the largest U.S. mutual fund run by a single. So, again, when the only part of the company that's growing is the number of shares outstanding, that's a concern, or you know, when losses are growing, that is almost a I don't have time for that we're finding. Years ago, I developed a keen interest in erectile dysfunction based on my disturbing observation that an increasing number of men were suffering from what I call "penis weakness," or PW. And you get 2% in the long bond, and the long bond isn't growing their "payout," and presumably, the U.S. equity companies are going to grow their dividends at a GDP-plus rate. Dudley S. Danoff, MD, FACS, is the attending urologic surgeon and founder/president of the Cedars-Sinai Medical Center Tower Urology Group in Los Angeles, California. [1] At US $129 billion, Contrafund is the largest actively managed stock or bond mutual fund run by one person. 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. Danoff: That's a really good question, Christine. I mean, when I was an analyst, I can remember calling companies after they reported and pleading with somebody in the CFOs office to either read me the details of the income statement and balance sheet, or then to fax me the information quickly, but I do remember part of the job was to call the company and ask for a packet. And in talking to company management--what do you think you get from that experience? (Disclaimer: This recording is for informational purposes only and should not be considered investment advice. William Danoff is known for being a vice-president and portfolio manager of Fidelity Contrafund. And often, it's really just, Is this company going to be bigger and better and stronger five years from now than it is today? And that can be subtle, and experience helps there. That has been a change over the last couple of years. I want to make sure the research department knows I care about the stock. And the thought process was, Well, we have industry expertise, we have company expertise. 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. Over the past year through February 11, Contra returned 27.6%,. And the culture of Fidelity's research first, and everyone really started as an analyst in the research department and then continued to be an analyst even though their title might be a fund manager. The band recorded for John Denver's Windsong label. And maybe you have a king showing, and the other players have low card, so you can bet. For his accomplishments, Morningstar named Will its Domestic-Stock Manager of the Year in 2007. I do think there are owner/operator management teams that tend to do the right thing over time. Class: Magnoliopsida. Owen Danoff was born on 3 November, 1989 in Washington, D.C., United States. Order: Nymphaeales. I think it would be hard if I hadn't grown up with the fund. Ptak: Bye. Surgical Oncology, Urology 310-854-9898 Fax: 310-854-0267. 5847 Education: BA Hunter College, City University of New York, 1976. Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. He's a graduate of Harvard University and earned his MBA at the Wharton School of the University of Pennsylvania. 2. Dr. Dudley S. Danoff is a Urologist in Los Angeles, CA. And Danoff "doesn't exhibit any signs of weariness or burnout," says Lowell. Finally, we'd love to get your feedback. Benz: We were hoping you could touch briefly on the role of private firms in the portfolio, perhaps talk about what percentage of time you spend researching private firms--you reference them earlier in the conversation, that theyre maybe a bigger part of your thought process than they were years ago. I respect you. I mean, when Facebook went public, they were--and Google, they were--both nicely profitable, growing companies. Owen Danoff was born in Washington, United States. Thanks so much. Masters in Business. Also learn how He earned most of networth at the age of 31 years old? Dr. Danoff has extensive experience in Urinary Conditions and Urinary Calculi & Removal. And again, I referenced low interest rates. This includes companies that have shown a strong competitive position, high returns on capital, and solid free cash flow generation, as well as management teams that have been stewards of shareholder capital. Our guest this week is Will Danoff. The Fidelity Contrafund is a large-cap growth fund with $139 billion in . Born on May 7, 1946 in United States of America, Bill Danoff started his career as Singer . So, I don't think it's bad that I've increased my weighting in technology and the business models of some of these larger technology companies. 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. Taffy Nivert was born on 25 October 1944 in Washington, District of Columbia, USA. Often, that executive will figure out what they want to do for six months. You know, I've been a shareholder of Google, now Alphabet, since the IPO in 2004. So, I'd say my emotional coefficient has improved. Timely insights from Fidelitys portfolio managers and analysts on navigating volatility and long-term investing. Family: Nymphaeaceae. And that's one way to improve your understanding of important trends that important companies like Google are seeing and then assess the quality of the management below just the CFO or the CEO. I've never heard of this company, and it looked like they were growing. And another 45-minute presentation had to be done. 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? I'm tasting the soup in the kitchen every day and tweaking it, but generally, I like the taste and I'm aware of the taste profile that I have. Bill Danoff In 1976, using Fat City as the core, Bill added Jon Carroll and Margot Chapman to form the Starland Vocal Band, which quickly gained national fame with the monster hit, "Afternoon Delight". 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. If you think ABC Company is the best in your group, I'm willing to accept that. But partly, it's just this opportunity. Morningstar does not guarantee the accuracy, or the completeness of the data presented herein. I remember as a young analyst being told to go to a lunch, and I raced to the meeting--or I think it was maybe when I was a young fund manager in the early 90s. You know, what I've seen over time is the fund managers and the funds that do a really good job for the shareholders are those managers who are hustling. Also learn how He earned most of networth at the age of 60 years old? 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. Christine Benz: And I'm Christine Benz, director of personal finance for Morningstar, Inc. Ptak: Our guest this week is Will Danoff. Ptak: If I may, I wanted to ask quickly about portfolio construction--a couple of aspects of it. Owen Danoff s birth sign is Scorpio. Will Danoff32 years 9/17/1990-12/31/2022 On average, the Fidelity Contrafund has beaten the S&P 500 Index by 2.31% per year. Tom Ford. We recommend you to check the complete list of Famous Singer. They hand off responsibility for security research and talking to management. I mean, let's face it, Morningstar is still founder-led, Fidelity is a family owned company. And this is always this debate I have when I think about biotech as a sector, and there are some very smart scientists who are pursuing important on medical needs. One--you have to make sure that you understand the threats to your existing holdings, but also, there's usually a pivot point where a concept then turns into a profitable business. indexs 10.4%. So, I think, for me, one of the advantages over time is to be able to think long term and to try to think about what's on the minds of the executives on the other side of the table. Mitchell Danoff is 71 years old and was born on 07/24/1951. Will Danoff32 years But I'm watching each position as closely as I can, and every quarter the company's report, and you get to monitor how they're doing, and you get the update. Contrafund is so large (about. March 2, 2021. And I think that probably partly explains why I haven't been as active on social media. But when it comes to some of the tech and the biotech, I'm treading more lightly. On average, the Fidelity Contrafund has beaten the S&P 500 Index by 2.31% per year. Consult an attorney, tax professional, or other advisor regarding your specific legal or tax situation. For me, it's the ability to make big bets it's harder. So, margins for the S&P 500--both operating margins and free cash flow margins--have improved nicely in the last 15 years. A native of Long Island, Dr. Danoff graduated from the University of Pennsylvania School of Engineering and Applied Sciences with a degree in biomedical engineering. So maybe 10% of my time. What do you have on your list that would fit that bill even if it's more expensive than the average company in your group? So, it's that's sort of give-and-take. Morningstar Research Services shall not be responsible for any trading decisions, damages or other losses resulting from or related to the information, data analysis or opinions or their use. 10 years: Fidelity Contrafund 12.40%, S&P 500 Index 12.56%. Until next time, thanks for joining us. 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. Jeff Ptak: Hi, and welcome to The Long View. Managers here at Fidelity have asked me to close in the past, and I've decided for political reasons that I would agree with my managers, but then we've reopened. Sep.18 -- Will Danoff, Fidelity Contrafund Manager spoke Exclusively with Bloomberg's Erik Schatzker about investing in post-pandemic and how he's managed to. Bill Danoff Family Background & Career. Danoff: Jeff, just again, to make sure the facts are correct. Los Angeles 8635 W 3rd St Los Angeles, CA. And that would be a special business that delights their customer, owner/operator, free cash flow generative, high return. And I don't want it to fall by the wayside. Find Dr. Danoff's phone number, address, hospital affiliations and more. I mean, Apple is the largest company in the world; they're very profitable. Please see additional standard performance information. And I'd say try and stay optimistic. The duo later evolved into Bill and Taffy and toured with Denver in the early '70s. We've been very lucky that in the last 10 years, these mega-cap companies have been able to continue to grow. Please see additional standard performance information. And now people have two devices. I do feel, honestly, Christine and Jeff, that a large fund can only do so well and that smaller funds may do better than I do. During Danoff's 30-year tenure, the Fidelity Contrafund has outperformed the S&P 500 in 100% of rolling 10-year time periods; it has outperformed the S&P 500 Index by an average of 3.21 percentage pointsRead More Will Danoff, Fidelity Contrafund Manager spoke Exclusively with Bloomberg's Erik Schatzker about investing in post-pandemic and how he's managed to beat the S&P 500 by an average of more than 3 . You know, sort of like, basically the cost of that being whatever capital you'd have to divert from your next best idea, or does circle of competence, however you would define that, enter into it as well? But again, its personality in what you do, and Peter Lynch talks about the notion of a poker game. I think the book of business is about $185 billion now, maybe a little higher. I'm going to not spend my time there? And that it's really hard to know that you're going to win the hand when everybody only has two cards. Danoff: That's a great question, Christine. Mistakes are made, but I think that's the other advantage I have at Fidelity where we have a lot of young analysts and associates who are more open to new ideas. WATCH: Will Danoff, who as manager of Fidelity's Contrafund has beaten the S&P 500 for three decades, makes the case for active . So that'swhatever--coming up on 16 years, and I don't know, maybe 10 years ago, we decided that we needed to visit Mountain View more regularly and asked for visits with somebody other than just the CFO. And that's one of the challenges--we talked earlier about size--that it's harder for me to make a new idea a meaningful bet. 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