Investment Models

Do you have any heroes?

Dante’s final volume is filled with heroes of his faith. Because the Paradise is an allegory of the soul’s pilgrimage towards God, he describes heaven as filled with all kinds of good examples: theologians, jurists, rulers, philosophers, and so on. They advise Dante along the way.

Similarly, investors can gain wisdom from examining the lives and approaches of investors who have taken various approaches to their art: value investors, growth investors, quantitative managers, shareholder activists—there are many ways to approach your goal.

Investors are fortunate to have such well-documented models. Investing is a semi-public act. Large shareholders have to disclose their positions in public companies. And many institutional investors are looking for new business, so they aren’t shy about discussing their methods. Whether it’s Warren Buffett’s folksy wisdom, John Templeton’s commitment to international diversification, or Peter Lynch’s common-sense rules, it can be both entertaining and instructive to listen to what they have to say.

Whatever the approach, some common themes arise: passionate commitment, disciplined mathematical rigor, a cold-eyed view of individual holdings, and a realistic understanding of incentives—both their own, and of company management.

Dante’s final volume closes with a vision of heaven. Investors profit if they keep an eye on where they’re going, and take the advice of those who have gone before.

Douglas R. Tengdin, CFA

Chief Investment Officer

By | 2017-07-17T12:34:16+00:00 July 8th, 2014|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. –
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