Some quotes from the Morningstar Investment Conference

Here are some insightful statements by the presenters or panelists at the Morningstar Investment Conference held in Mumbai last week.
By Morningstar |  29-10-18 | 

Great investment advice needs to be: Personal. Efficient. Innovative. This will serve the real interests of the clients. And technology will enable you to address the needs, wants and preferences of your clients. Technology is an enabler, not a threat. Advisers need to embrace it.

- Kunal Kapoor, CEO of Morningstar Inc.

With regards to asset allocation, generally, as one grows older, the emphasis moves from growth to income. I don't do an age-based formula. I am 50% in stocks. I would not recommend it for everyone. Based on my circumstances and my investing background, this is what I have chosen.

In the long run, it's corporate earnings and corporate dividends that matter. This is your Investment Return. Dividend Yield and Earnings Growth.

The key behind wealth creation of index funds is dividends. Dividends are an investor’s best friend; compounding power of dividends are great.

John Bogle, Founder of The Vanguard Group

Active management is not easy. I tell my analysts that I do not want to see index companies in the portfolio. Bear markets are short in duration. Emerging Markets bear markets AVERAGE 7 months with an AVERAGE a decline of -34%. There will be exceptions, but this is the average. Capitalize on it.

- Mark Mobius, Founding Partner, Mobius Capital Partners

If you are a long-term equity investor, don't waste a crisis.

- Pankaj Murarka, Founder of Renaissance Investment Managers

In investing, never shirk from accepting the reality that you are wrong at least one third of the time. It need not be that you lost money, but it could be that the investment did not deliver as much as you envisaged.

There is always a lot of noise around. Be singularly focused. Don't obsess over the moves of the RBI, crude rates, currency rates -- focus on the intrinsic worth of a business and at what price it makes a good buy.

- Mohnish Pabrai, Managing Partner at Pabrai Funds

Question: What's worse that predicting the market? Answer: A cricket match, and the election outcome.

- Ajit Ranade, President and Chief Economist at the Aditya Birla Group

On Social Media (SM), you need to stay focused. Share information with a consistent thought process. Here are three questions you need to ask when using SM professionally:

  1. What is your goal for being on SM?
  2. Who is it that you want to target?
  3. How much of time can you allocate for SM?

- Leslie Marshall, Head of Experiential Marketing at Morningstar

The issue is not technology versus humans, but how clients want to be served. Technology cannot replicate the human interaction, especially in difficult times.

- Nicholas VanDerSchie, Head of Managed Portfolio Services at Morningstar Investment Management

Be visible and be authentic. No one can do business with you if they don’t know you exist. Today because of what has changed in the marketing world, anyone can think about how to build their brand.

- Rob Pinkerton, Head of Marketing at Morningstar

Growth is vital. But what is crucial is certainty of long-term growth, and quality of the growth. It is the quality of the growth rather than the quantum of the growth that matters. Cash flow reveals the character of the business.

- Bharat Shah, Executive Director of ASK Group

To ask a fund manager if we are in bear phase is like asking barber “Do I need a hair cut?”

- Saurabh Mukherjea, Founder of Marcellus Investment Managers

The one thing investors hate more than losing money on investments, it is paying taxes.

In investing remember that losses always loom larger than gains.

- Steve Wendel, Head of Behavioural Science at Morningstar

Risk is never constant. Risk is not volatility. In the long-run, stock returns are driven by fundamentals. In the short-run they move away from it. Risk is permanent loss of capital.

- Philip Straehl, Head of Capital Markets and Asset Allocation at Morningstar

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