Profile of Jeff Vinik who took over the Magellan fund from Peter Lynch then left to run his own hedge fund.
(Money Magazine, 2000)
Lynch's first successor lasted two years. Vinik took over in '92 at age 33. Soul searching at Wendy's over whether to take the job that could "wreck his family life." He lasted four years.
"To Vinik, the essence of investing comes down to this: a company's earnings ultimately drive the price of its stock. The key, then, is to predict whether that company will beat Wall Street's consensus earnings expectations."
"Hopefully, you could ask me about any company in the S&P 500 and I could tell you whether we could have a positive or negative earnings surprise this quarter." Ok..
"The long term is made up of a series of short terms. I want to own Coke when it's the right time to own Coke."
"He doesn't fall in love with a sector or a stock. You don't often find people as ruthless and cold about how they invest."
"I use charts as screening mechanisms. I'll find a chart that looks attractive to me and then I'll do the fundamental work."
"Vinik's main interest was how confident we were about our revenue growth" "He's a trader."
High turnover quarter to quarter.
Tried to time the market in 1996, getting out of his tech stocks, into bonds. That was the end of his run at Fidelity.
When he left: "they killed the cowboy."
Magellan AUM had ballooned from $20 to $50bn AUM.
Full profile: "The Unlikely King of Extreme Investing"
williamgreenwrites.com/wp-content/upl…
Share this Scrolly Tale with your friends.
A Scrolly Tale is a new way to read Twitter threads with a more visually immersive experience.
Discover more beautiful Scrolly Tales like this.