Followup on "finding a good investment manager"

Morningstar gives it 5 stars (their top rating) and it's a analysts pick. The summary from their analyst research:

"We have full confidence in this fund. It will hit potholes but strong stock-picking gives it an edge that will accrue over time: It has returned an average of 9.1% annually since inception, while its typical peer has lost 4.7% per year in that stretch."

The only downside I see is that, at 1.01%, the expenses are a bit higher than I would like, but that is not a deal breaker to me. It is pretty tax efficient, you may want to consider using taxable funds instead of IRA.

-- Doug

Doug, I agree with you to some extent. I think that FAIRX is a good candidate for IRAs and an even better one for taxable money.

I spent quite a bit of time reading various interviews by Bruce, such as the 36 pages one given to Oustanding Investor Digest, and am now very convinced that I should move quite a bit of different sorts of accounts to that fund to manage.

My current problem is that many things that I own in my taxable accounts, are very cheap relative to their value range, so I am very reluctant to sell them, even to give the proceeds to such an outstanding guy as Bruce, to manage.

Nevertheless, I will open a taxable account at Fairholme, as well, and will start moving money there.

At 6 billions in assets, it will not take that many successful years for him to become too big, but by that time I can find some other use of money.