Investing Insights From People Who Would Know
Dan Fluss is the vice-chairman of Loomis Sayles and Andrew Aziz is an avid day trader, together they recently shared investing insights in an interview, according to Business Insider.
Dan Fluss has been in the investment business for 61 years and offered four pieces of career wisdom. The first is to show up early, smile and work hard. The second is to not be narrow-minded and to notice things outside of your area. The third is to try to lead a balanced life. Lastly, Fluss in all his wisdom says, do not drive your wife bananas.
Andrew Aziz has no traditional training, but instead made his own rules that have allowed him to become a successful day trader. His three-step approach has allowed him to turn day trading into a career. His first step is to find stocks that have moved drastically based on the news. The second step is to find the support and resistance levels and then determine which way the stock is going. The third step is to watch the stock for 5-10 minutes before executing. Aziz averages about $1000 in profit a day.
The insights that these two men shared have led them to be successful in the competitive investment industry.
Mark Baribeau, head of global equity at Jennison Associates, also shared a little insight into his favorite type of tech stocks that he refers to as "third way tech companies".
"An example would be Shopify in retail optimization or operating system, enabling young entrepreneurs to get online, start selling their cool products, and avoid the big companies like Amazon, which are going to take most of the economics."
"Another example might be Mercado Libre in Latin America, the e-commerce leader there. They're taking advantage of the lack of payments infrastructure to create their own digital payments procedure or use case, Mercado Pago, again accelerating the deployment of e-commerce and making it easier for consumers to buy online and now, offline." Mark says.
Baribeau says, "You have to make sure they have the competitive advantages to withstand lots of competition, which both companies that I gave an example of have. But as long as those competitive advantages continue to grow, and more and more people use their services, they actually get a network effect, which makes it very difficult, actually, for others to come in and try to compete away that business. So scale's important, the success of the technology's important, the vision and focus of management — those are all very critical to establish in that kind of success."
While discussing big tech stocks he says, " For the large-cap internet giants in the US, we think it's already had an impact on their valuation because fundamentals have been very strong, yet the stocks have kind of stalled out. And I think that valuation compression will remain as long as that regulatory overhang is there. So far it hasn't really impacted, as it shouldn't, any fundamentals. But it does impact valuation, but those companies aren't particularly expensive. They're, in fact, some of the most attractive in the market and, obviously, that regulatory overhang is one of those reasons. "