No-brainer bargain stocks have been picked over.
Just as individuals are starting to develop the stomach for investing again, professional investors say stock-picking has become a challenging endeavor.
The best deals evaporated so quickly in the rally that followed the early March stock market sell-off that even the professionals missed out on many of them.
Some of the most renowned fund managers were asked to tell an audience of investors and financial advisers at a recent Morningstar Inc. convention about mistakes they made amid the 56 percent plunge in the market. One of the most glaring: They didn’t buy enough or fast enough.
Like the average investor, fund managers struggled to make sense of what was occurring, and emotions got in the way.
Wally Weitz, manager of Weitz Value fund, said that as he awoke each day during the market plunge, he wondered what former financial Goliath might disappear. Stock prices were attractive, he said, and “it would have been fun if it hadn’t been so terrifying.”
Money in a bear market
Christopher Davis, manager of the Clipper and Selected American funds, said his grandfather used to say, “You make most of your money in a bear market; you just don’t realize it at the time.”
For investors who put money to work around …
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