This podcast episode delves into the world of successful stock picking, featuring insights from industry veterans. Joel Tillinghast highlights his journey and outperformance in the Fidelity Low Price Stock Fund. Peter Lynch emphasizes self-awareness and focusing on industries with strong comprehension, incorporating growth elements into his value investing approach. Bill Miller shares lessons learned from mistakes, stressing the importance of critical evaluation and concentration in high-conviction companies. The episode explores the evolution of Fidelity's investing philosophy, discussing the value of small cap stocks and their competitive advantage in covering these companies. Experts emphasize the concept of "addition through subtraction" in active management, eliminating potential underperformers to enhance alpha. The ephemeral nature of data is discussed, highlighting the need for human interpretation and judgment in successful active management.
