Bill Smead managt den Smead Value Fund.
Smead Capital Management
Bill Smead’s Value fund is up 141 percent since March 20, 2020.
In contrast, the S&P 500 gained 114 percent over the same period.
Smead shares his tips for beating the market and how he chooses stocks.
Bill Smead’s fund has had an impressive run in recent years. Since the market’s lows in March 2020, his Smead Value Fund has been rising (SMVLX) by 141 percent. For comparison: The S&P 500 rose by 114 percent in the same period. The fact that Smead doesn’t invest in the “Magnificent Seven,” which drove the S&P 500 up 19 percent last year, makes this performance even more extraordinary.
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The founder of Smead Capital Management can also show good performance in the long term. His fund, which he manages with his son Cole, has risen 494 percent over the past 15 years. Loud Morningstar data That was enough to beat 97 percent of the comparable funds. It also outperformed 97 percent of its competitors in the last ten years and 98 percent in the last five years. How did he do that? In a statement Tuesday, Smead shared the secrets to his success using four guiding principles.
Four ways to beat the market
Smead said that the alpha factor comes down to four things. The alpha factor indicates the extent to which a trader’s investment has performed better or worse than the market over the same period. His criteria:
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