Getting Morningstar Free

1. Getting Morningstar Free From the SD County Library

2. Morningstar • Regular edition available on line @ www.morningstar.com with limited capability. • Premium edition available @ above site for $19.95/month. • We’ll focus on a free edition available thru the San Diego County Library @ www.sdcl.org.

3. Navigating to site • You will need a San Diego CountyLibrary Card number and pin to use the web site. • Enter http://www.sdcl.org into the address line on your browser. • Click on databases, then business and investing, then Morningstarfrom library branch. • Fill in your library card number and pin then click submit.

4. Navigating in the site. • From the Morningstar (mst) web site home page, enter VFINX (any mutual fund ticker will do) in the “Reports” line. • A new page with the quote will appear. • Explore the page by reading each of the pages under the blue bar in the left margin of this page.

5. Note Especially! • Purchase information. • open to new investors??? • Stewardship Rating. See $ manager’s own money is in the fund. • Snapshot. Initially, consider only • no load funds • <1% expenses • turnover < 30%/yr

6. Suggested Sequence • Chart of five year returns vs. S&P. • “Performance More” for 10 yr. returns. • Click “Purchasing Info” for open / closed • “Snapshot” for total assets, fees, turnover, management. • “Management tab” to see number, tenure and performance of managers. • “Stewardship” Read it all!

7. Let’s look at some Mutual Funds VFINX message… index fund MUTHX message… fund expenses VGHCX… A sector fund DODFX… An international fund DODGX message… value fund

8. VFINX Vanguard 500 Index An S&P 500 Index Fund Total Returns are typically 2% ahead of the S&P 500 Index because of dividends on the S&P 500 stocks.

10. MUTHX • Mutual Shares Z, a Franklin Family Fund • Large-cap value started by pundit M. Price • Note • was recently closed • Classes A, B, C & R • same portfolio • same ratio of stocks in portfolio • higher fees and lower returns!

12. VGHCX • Vanguard Health Care • Note how the five and ten year performance has out paced the S&P • Great to own, but closed to new investors! • A favorite of BI members for many years

14. Category Characteristics • Various categories of funds behave differently in bull and bear markets • Compare Performance • Funds recommended by non-BI source • compare large cap growth • vs. large cap value • vs. mid cap vs large

19. International & Foreign Funds • Consider Currency Risk • Consider the dollar’s strength • Here is one new fund to consider

21. Value Funds • Solid during bear and bull markets • Consistent, reasonable returns

22. DODGX • Dodge and Cox Stock Fund • Lagged S&P during the internet bubble • Now leads the S&P • Excellent long term returns • Excellent stewardship grades • Fund Family gets high marks • Invests in contrarian (unloved and beaten up) stocks

24. DODGX lags S&P 500

25. DODGX lead S&P 500

26. Maybe 10 years isn’t enough… So…

27. Select Mutual Fund Returns Sources: 1985 to 1997, AAII’s Low Load Mutual Fund Handbook; 1997 to Present, Morningstar

28. Value Funds Growth Fund Index S&P 500

29. Danger is buying Index or Growth here. Value Funds Growth Fund S&P 500

30. 15% Double in Five Years Isn’t Compounding Wonderful !!! $160K $80K $40K $20K

31. Hypothesis: Value Funds are less volatile than growth and index.

32. Value investing is a learned, predictable process applicable to Buying stocks.

33. Value Funds escaped the Internet Bubble.

34. Value led growth during the bust. Value lagged growth during the boom.

38. We’ve Covered… • Financial Planning • Mutual Fund Categories and averages • Taxes • Comparison Tools • Morningstar web-site • Ten and 20 year histories of selected funds • And more

39. Questions? • On any of the above? • That’s all Folks!

40. I Encourage You to LEARN • Web sites, in addition to the ones we’ve studied today, like www.finance.yahoo.com/, www.moneycentral.com, etc. • Basic Accounting. • Not bookkeeping • Understanding mutual fund financial statements and their tax implications from the point of view of the investor. • Using Qualitative, (non-numerical) Data.

41. Tutorials on the web • http://www.morningstar.com/Cover/Classroom.html • http://www.betterinvesting.org/mutualfunds/courses/ • http://finance.yahoo.com/funds/basics • http://www.aaii.com/Classroom/ • And many more!

42. This time is for you! • Any questions? • Any funds you would like to look at specifically?

43. A Recommended Read • Contrarian Investment Strategies, The Next Generation, by David Dreman

44. Mark Your Calendars!Coming Attractions: • Special Stock Study Computer Group Meeting: 6:00-8:00 pm, Wednesday, August 15 at the JCC, 4126 Executive Drive, La Jolla. Manifest Investing’s Mark Robertson • InvestEd, Costa Mesa, August 17-19 • Edufest, SD BI Chapter Annual meeting and Education Faire, September • SSCG Meetings begin October 4th at 6:00pm at The JCC

45. A few last details • Evaluation Form • How did you find out about the workshops? • What did you like most about the class? • What did you like the least? • What would you like to have included in the class that was missing? • Thanks for coming. We hope to see you again in August, September and on...