Investment Advice from a Fidelity Manager: Beating the S&P 500 and Preparing for Stagflation

Joel Tillinghast, the manager of Fidelity Low-Priced Stock, has outperformed the S&P 500 and the Russell 2000 index since the fund's launch in 1989, with an annualized total return of about 13%. Tillinghast's strategy involves seeking undervalued small and mid-cap stocks that trade at a discount to their intrinsic value. He emphasizes the importance of long-term investing and considering a company's earnings potential over several years. Tillinghast also highlights the need for investors to have a clear advantage or special approach when choosing active funds over passive index funds. His advice for young investors is to take a long-term view, be patient, and carefully assess the price and value of investments.