Growing Rich - Arabictrader.com

GROWING RICH WITH GROWTH STOCKS
phasis is on research and getting to know management. Davis doesn’t
believe in market timing and strives to be a long-term owner of every
stock he buys.
L. Roy Papp is like the jolly old grandfather every kid would love
to have. This folksy investment manager from Arizona has more than
four decades of experience under his belt, including a stint as the
American director of and ambassador to the Asian Development Bank
in Manila under President Gerald Ford. Papp graduated from the
Wharton School and worked his way up through the ranks at the
growth-investment shop Stein Roe & Farnham in Chicago. He started
his own firm in the early 1980s and now has some $1 billion under
management. Papp’s pioneering investment philosophy calls for
buying American companies with a decidedly international theme,
to safely capture some of the incredible profits enjoyed by doing
business overseas. To make Papp’s buy list, a company must get at
least 35 percent of its sales or operating earnings abroad, show increased
earnings and dividends in each of the last ten years, have a
high return on shareholder equity, and sport only a small amount of
debt.
Elizabeth R. Bramwell is among the most successful women ever
to work on Wall Street. Following her early days as an analyst, she
teamed up with her business school classmate, Mario Gabelli, to start
the Gabelli Growth Fund in 1987. During her tenure as manager, she
consistently bested the performance of her boss, which created a lot
of tension between them. She ultimately quit and went out on her
own. Bramwell follows smaller stocks than Yacktman and Davis, and
holds a more diversified portfolio. Her investment style can best be
described as “eclectic.” She is both a top-down and a bottoms-up
manager, who begins by analyzing broad secular trends before
hunting for individual companies that stand to benefit. She attends
plenty of analyst meetings and prefers well-financed businesses with
growing market shares, ready access to capital, and good managements.
The “One-on-One” profiles, which are interspersed between the
chapters, contain complete biographies of each of these five living
investment legends. One thing you’ll learn from their personal stories
is that past life experiences have had a definite impact on the way
they choose stocks. You’ll also discover each investor’s ten favorite
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