Invest Like a Legend
Welcome to our annual guide to making money. This year, we talked to Bay Street powerhouse Kiki Delaney about the trials of value investing, low-fee evangelist Burton Malkiel on the enduring legacy of his investing classic, master of emerging markets Mark Mobius on why good governance pays off, and Fidelity's Joel Tillinghast on why the future is small-cap.
Toronto | Catherine (Kiki) Delaney has the brokerage business in her blood. Her dad founded his own firm in Winnipeg, and she got her start as a sales assistant at Merrill Lynch Canada in 1970. Throughout her career, she’s been a trailblazer for women on Bay Street, and her firm—Delaney Capital Management, started in 1992—is known for investing based on fundamentals, not hot trends. One of Delaney’s best moves was buying Constellation Software stock at $17. In January, it was trading at more than $800.
SAN FRANCISCO | The CEO of Charles Schwab Investment Management, the third-largest asset gatherer in the U.S., beat the odds to become the fourth most powerful woman in finance (as ranked by American Banker). Originally hired to clean up someone else’s mess (a fixed-income fund that cratered in 2008), she grew Schwab’s exchange-traded fund business from a couple billion under management to more than $120 billion (U.S.).
SAN DIEGO | Often called Wall Street’s Dean of Valuation, the 61-year-old Damodaran is a professor of finance at New York University’s Stern School of Business and an expert at discounted cash flow analysis— valuing companies based on their expected future cash flows. On his lively website, Damodaran Online, he tells readers exactly what he thinks about markets and stocks, and what he’s buying and selling himself.
LONDON | As the globetrotting lead manager of the Templeton Emerging Markets Investment Trust from 1989 to 2015, Mobius averaged returns of more than 12% a year (a record so strong that a Japanese publisher dubbed him the Bald Eagle and turned his biography into a mangastyle comic). A year ago, Mobius retired as head of Franklin Templeton’s emerging markets group and launched London-based Mobius Capital Partners with Carlos von Hardenberg and Greg Konieczny.
PRINCETON, N.J. | Malkiel is a Princeton University economist and the author of the 1973 investing classic A Random Walk Down Wall Street, which argued that it’s almost impossible for active money managers to beat market indexes over the long term. The 12th edition has just been published, and Malkiel feels vindicated by more than four decades of data and the rise of low-cost index funds. Yet, at age 86, he also still takes the occasional flyer on individual stocks.
BOSTON | A knack for spotting future stars among the small-cap ranks has made Tillinghast one of Fidelity’s best-known stock pickers. Under his management, the Fidelity Low-Priced Stock fund has returned almost 14% annually since 1989.
SILICON VALLEY | In bro-centric Silicon Valley, Strange is an outlier—a female partner at top venture capital firm Andreessen Horowitz. Bonus: She’s a Canadian who helped create the C100, dedicated to promoting Canadian startups in the Valley. Strange studied mechanical engineering at Queen’s before doing her MBA at Stanford. Google acquired her first startup, and Strange went on to manage the creation of Google Chrome for mobile before joining Andreessen in 2014.