You haven't appeared in commercials or written books or taken to Twitter, and you could do any of those things and gain a big following and greater notoriety. The cheap stock reflects how F-Prime . People ask a lot about when do you sell a stock--and you sell a stock when the earnings growth slows, often due to intensified competition. The world, in many ways, has gotten smaller, and what's happening in China is very important to the rest of the global economy. Insights from Fidelity's portfolio managers When you look back over a 20-year time horizon, you just see a pattern that you want to replicate going forward. Danoff: That's a really good question, Jeff. And I would say, often because Joel and I and all the other fund managers started as Fidelity research analysts, when a new analyst arrives, they usually show up at my office with a list, and say I'm the new railroad analyst. The chart above illustrates the performance of a hypothetical $10,000 investment made in the fund and a benchmark during managers tenure. The views and opinions of guests on this program are not necessarily those of Morningstar, Inc. and its affiliates. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also respect individual opinionsthey represent the unvarnished thinking of our people and exacting analysis of our research processes. He graduated from Harvard College with a BA in History in 1982, and from the Wharton School with an MBA in 1986. I remember being on a panel with Nelson Peltz, and Nelson, who does a great job at Trian, likes to write white papers on the company's business and then start telling management what to do, and I said, the only letter I ever wrote to management was thanking them for a great job and an update that I found particularly helpful. I think about trying to understand the facts, trying to use my accumulated industry and company knowledge to anticipate the future. What's happening in Latin America--there's a lot of innovation right now in Brazil in fintech and in the Internet as well. 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. You know, I've been a shareholder of Google, now Alphabet, since the IPO in 2004. And whether that informs the way you manage the portfolio. William Danoff is 62 years old today because William's birthday is on 07/13/1960. And this is always the great debate. 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. And I think Fidelity lets people be who they are. Maybe that's a good place for us to start. I would say the key, again, when in doubt, call the company, when in doubt, assess company A versus the other companies that you really like. Will Danoff has been the fund manager of the Contrafund at Fidelity investments since 1990. And again, private companies are an opportunity to learn and, if they're the right private company, an opportunity to invest. Will Danoff32 years Family (1) Spouse But partly, it's just this opportunity. Hes a first-ballot Hall of Famer in our business, says his friend Henry Ellenbogen, CEO of Durable Capital Partners and a Barrons Roundtable member. 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. So we can learn, but the monitoring of these companies takes a lot of time, but it can be very, very instructive as to the quality of the company that you're invested in or considering investing. 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 at scale. Sometimes William goes by various nicknames including William A Danoff and Will Danoff. Danoff: Well, Jeff, just to make sure that we're level set, I do believe that there is a Fidelity commercial about a letter that I received in 1993 from a new Contrafund investor. And then hopefully, in six or nine months, we'll be able to follow up and say, How's it going? or at the end of the year, say, how did you do and what else are you going to change?, Thats just the way life is--you got to keep moving forward, and do the best you can, but I personally like to interact with management teams, and I owe it to my own shareholders to say every day I'm coming to work, I'm looking for new ideas. I think the key to being a great investor is being open to new ideas, learning from new ideas, and finding that right balance between waiting for the right moment. Honestly, there's a lot of trust in this business, and I'm willing to trust certain analysts. Mr. William Danoff, the portfolio manager of Fidelity's Contrafund ( FCNTX ), was initially rejected by Fidelity before coming aboard as an analyst in 1986. 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?. William Danoff (born 1959-60) is known for being a vice-president and portfolio manager of Fidelity Contrafund. And I said, I have to go to this presentation. Dudley S. Danoff, MD. We're having a healthy debate and discussion about those ideas, and then I'm presenting ideas to them. They made some mistakes and learned from their mistakes. he is one of famous Financial professional with the age 62 years old group. So, I think partly every investor has to play to their strengths, and Fidelity and other big institutional investors have a huge opportunity because these management teams are willing to talk to us and visit us. Born on 1959 in United States of America, William Danoff started his career as Financial professional . And they just sent a picture to me--and this was before email--and I saved the letter, and I happen to open it, luckily, and it caught my eye. [1] At US $129 billion, Contrafund is the largest actively managed stock or bond mutual fund run by one person. So, you know, I do have a lot in technology. Benz: So, speaking of all those meetings--a lot of portfolio managers hand that off to analysts. Identification: Nymphaea odorata is an aquatic perennial plant. 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. Responses provided by the virtual assistant are to help you navigate Fidelity.com and, as with any Internet search engine, you should review the results carefully. I hadn't really prepared, but I was just going to just learn about this new company. So, I went, and I was really excited about the story. I mean, you can see Tim Cook giving commencement addresses, you can see Mark Zuckerberg being interviewed, you can see Jeff Bezos being interviewed. Stock values fluctuate in response to the activities of individual companies, and general market and economic conditions. Privacy Policy and But, you know, every CEO has now become a CTO because the cloud is forcing every company to think about technology. So, I try to stay within my own circle of competence. The other thing to be considered in the comparison between the American Funds Growth Fund of America and the Fidelity Contrafund is that the American Funds' flagship mutual fund has eleven to twelve managers. The band recorded for John Denver's Windsong label. Masters in Business. So, I remember the early days of companies like Costco, and management has experimented with new ideas, but generally speaking, they're close to their customers, they had a great value proposition. Do you have kind of a too hard pile--either types of companies or maybe industries that you just say, This has not historically worked out well for me. And in talking to company management--what do you think you get from that experience? 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. 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 . 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. An error has occurred, please try again later. 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. And the last 10 years with interest rates falling so much and the havoc wreaked by the global financial crisis has been more difficult, but I think I'm 100 basis points or 150 over for the last 10 years. When he was just 15 years old, he created his first original song and produced it on his own. The first is, I was just curious how you think about the path to outperformance, whether you're conscious of the need to produce a few, call them supercompounders. He graduated from YALE UNIVERSITY in 1963. But there's no question that if you put it in the lens of working for your shareholders and doing what's right for the fund shareholders, you're probably going to be working harder and hanging out in the zeitgeist a lot less. Danoff manages Fidelity's Contrafund and has for over thirty years. Low interest rates have created certain distortions in valuation. And, if I had to guess, I think that trend might slow down. Often, that executive will figure out what they want to do for six months. 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. But again, circle of competence to me means you know your companies well, but you also know certain sectors particularly well. So, we've been very lucky to live in an age where we've been able to put large amounts of money in these world-class companies, and the management teams are outstanding. The value of the fund's domestic and foreign investments will vary from day to day in response to many factors. Excited to be here. And if you haven't seen it, it's a very good letter. So, I don't know that many great investors who aren't great analysts. 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. And I was going to as many meetings as I could and just wanting to learn as much as I could. 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. Do you attempt to improve what you're not good at? But I would say capacity is one that I think a lot about. Permanent link Gear advertisements and other marketing efforts towards your interests. But mostly that's market appreciation. Fidelity does not provide legal or tax advice, and the information provided is general in nature and should not be considered legal or tax advice. And I'd say that we have meetings with these managements just like the other large institutions. And, you know, I would say this business is sort of like a poker game. You can't always assume that managements going to do the right thing. I don't whip the fund around. Will Danoff and Joel Tillinghast are veteran portfolio managers with different investment styles. Danoff: Jeff, just again, to make sure the facts are correct. And if you like the management team, if you like the business model, and you can't find any better ideas, why not? Current performance may be higher or lower than what is quoted, and investors should visit Fidelity.com/performance for most recent month-end performance. He's beat the S&P 500 300 basis points. So, Fidelity can monitor virtually every public company in the U.S. We can monitor every industry in the world. For a long time, I was a little late to the software-as-a-service sector. How did the growth initiative in China go? Popular As. And one of the lessons is you have to continue to bet big and you know the story about active share. His office accepts new patients. You may have a gain or loss when you sell your shares. On the other hand, you do have to find the right balance in life. 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. Adam Danoff net worth is $900,000. [2] Contents 1 Education and early career 2 Fidelity Contrafund 3 See also 4 References Education and early career [ edit] And, as you know, there were constraints on when you can book and only one class and no free food and all that stuff. You can help Wikipedia by expanding it. Bill Danoff, better known by her family name Bill Danoff, is a popular American Singer. Why are you here? And often there is a story to be told, and they want to express it to potentially large shareholders, and sometimes there is a subtext, and you've got to try to anticipate what are the other person's objectives. But I think a lot of companies stay private longer because they were able to receive higher and higher valuations without having to go public. S&P 500 But, you know, what we've all learned is we want to make sure that the management team is particularly special. I like to call companies. And I'm seeing 25 or more companies a week. This would be through my 401k, so all tax deferred. 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. So, I'm trying to bet big with the bigger companies. Danoff: I think over time, maybe, you grow as an individual and you gain experience. But Fidelity gives us this great platform because we're one of the largest institutional investors. But capacity--you know, I'm my degree of difficulty is harder than a smaller fund. 8/12/2019. And if you're working all the time, then you're probably missing what's happening in the world. This site is protected by reCAPTCHA and the Google I can learn from you, you can learn from me, we can both learn from the management team, and then decide, do we buy, do we sell? This copy is for your personal, non-commercial use only. Ptak: Bye. But again, its personality in what you do, and Peter Lynch talks about the notion of a poker game. And I'm constantly looking for better ideas. My denominator is so big that it's not that easy to find really great stories at scale."[4]. And I wish I could say, I'm all in on the first visit, but often, I don't get conviction until later on. This chart is not intended to imply any future performance of the investment product. Our guest this week is Will Danoff. Ami Kuan Danoff has held many leadership roles in finance, including vice president at Putnam Investments, but most recently has dedicated her time to philanthropic endeavors. India is emerging as an important experimental ground for a lot of new technology as well. And the thought process was, Well, we have industry expertise, we have company expertise. I have to explain that I've become a little stodgy in my old age. And, again, this is an iterative process. Contrafund is so large (about. So, we're seeing a lot of companies come to Fidelity as private entities, and I'm listening and learning. Fidelity does have a massive staff of analysts. This is sort of who I am. Over the past year through February 11, Contra returned 27.6%,. At the end of his time at Berklee College of Music, he would emerge with a degree in film scoring. Thanks for joining us on The Long View. The private market has grown and, one could argue, became very overheated, let's say, in the 2017-2018 time horizon. And we can also monitor all of these companies overseas. And I think that probably partly explains why I haven't been as active on social media. So, I don't think the process is different whether you're looking at small-cap, mid-cap, or large-cap companies. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive. Already a member? I tend not to do well when we have to make a quick pivot. William Danoff was born on 1960. I'm leveraging your industry expertise. And they have basically gone from a startup airline in Europe to I think--they're like 25% of all passengers now flying in Europe fly on Ryanair, and they've done a great, great job. Timely insights from Fidelitys portfolio managers and analysts on navigating volatility and long-term investing. Total value December 31, 2022 for Contrafund was $457,343, compared to $234,530 for the S&P 500 Index. We've been very lucky that in the last 10 years, these mega-cap companies have been able to continue to grow. Adam Danoff Net Worth Adam Danoff Net Worth 2022, Age, Height, Relationships, Married, Dating, Family, Wiki Biography. And then my second question is how you size positions. Let's call the company together, or let's go visit the company together. Because, if you, Jeff, and I were working together, and I was just out at a conference and came back and said, Oh, my gosh, ABC Company sounded awesome. Growth of $10,000 invested in Contrafund versus S&P 500 Index, September 17, 1990 to December 31, 2022. He's a graduate of Harvard University and earned his MBA at the Wharton School of the University of Pennsylvania. Dr. Danoff has also served as President of the Association of Program Directors in Endocrinology and Metabolism (APDEM), and in that role, was a Charter Member of the APDEM/AACE Joint Liaison Education Committee. Through the crises, Danoff has focused on companies led by founders or engaged management that can double earnings over five years, on the theory that stock prices will follow. Why is that one trading at such a discount to the group? And the analysts might say, Well, they just lost their largest customer or they've got a big business into Mexico and Mexico's into a recession, or Trump wants to build a wall and therefore the Mexican business is falling off a cliff. And I usually say, That's not the type of company I'm interested in. Class: Magnoliopsida. It's harder for smaller-cap companies in certain industries to gain traction because the larger companies have just very strong winner-take-most type competitive positions. 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. Will Danoff, portfolio manager of Fidelity's Contrafund (FCNTX), is arguably a more impressive investor than Peter Lynch. 30 years of managing Fidelity Contrafund. A letter from Dr. Danoff to readers: My name is Dr. Dudley Danoff. Thank you again, so much, for joining us on The Long View. In addition to managing Contra, Mr. Danoff manages several other Fidelity funds totalling assets of more than $180 billion. 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? The subject line of the email you send will be "Fidelity.com: ", Will is dedicated to the long-term benefits of active management. Old age gain or loss when you sell your shares you also know certain particularly... Generates asset-based fees, which are calculated as a percentage of assets management... 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