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The Indomitable Investor: Why a Few Succeed in the Stock Market When Everyone Else Fails by Steven M. Sears

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Atlas Doesn’t Shrug

Dan Rice is one of America’s top mutual fund managers. He is to investing what Babe Ruth was to baseball—except Rice is a quiet superstar. When he buys a stock, he has already decided to sell. He is not looking for a gain of a few points. He wants to earn a return of 50 percent or more. He is patient. He is confident in his analysis. “We have a firm idea of what we think the company is worth and when it starts to get close to our price objective we review it closely to determine if anything major has changed. If nothing major has changed we sell,” he matter-of-factly says.14

Rice manages Blackrock’s Energy and Resources Fund. Blackrock manages over $3 trillion. Each year, Rice, has outperformed the Standard & Poor’s 500 Index. Over 10 years, from mid-April 2001 to 2011, Rice’s fund gained 517 percent, compared to 38 percent for the Standard & Poor’s 500. Anyone who invested $10,000 with Rice in 2001 had $61,718 in 2011. The same investment in the Standard & Poor’s 500 barely budged over the same period. Rice owns stocks for an average of three to four years. Rice rarely sells. He is not doctrinaire. If there is a change of circumstance that impacts his stock—such as an expected oil well that did not materialize—Rice sells. He is not bothered by short-term market fluctuations. His decisions are based on careful financial analysis. This gives him the conviction to not be scared by market moves.

“I am very fundamentally oriented,” he says. “I would buy more if ...

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