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Stock Strategist

Investing Tips From All-Star Managers

Shareholder reports offer a wealth of free stock ideas.

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It's 2007, and we are turning once again to the mutual fund world for a little free advice. Every quarter, mutual funds are required to publish lists of their holdings--and at the end of the year, fund managers offer their ideas on the performance and direction of their funds. They often drop tidbits of investment advice that we can use for our own benefit. We love to read the shareholder letters of managers we respect as we hunt for opportunities.

This quarter, we examined the shareholder reports for 15 mutual funds and found a wealth of information. As we discussed last quarter, each quarter we focus on managers who, like Morningstar's equity analyst team, search for stocks that trade below their estimates of intrinsic value and provide a margin of safety. While we are not endorsing these mutual funds, these managers follow the examples set by Ben Graham and Warren Buffett. We would encourage you to read the letters for yourself, and the links to them are in the following table. We should warn you, however, that some opportunities might have already come and gone, as it takes a few months for mutual fund managers to report their holdings and write their letters.

Jaime Peters does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.