Taking a Hint From Warren Buffett
Funds with big industrial and energy stakes that may be on Warren's wavelength.
The article was published in the September 2015 issue of Morningstar FundInvestor. Download a complimentary copy of FundInvestor here.
Warren Buffett in August made
To follow Buffett's lead on this theme you could pick a beat-up fund that invests heavily in industrials and energy. I looked for diversified funds in the Morningstar 500--the Morningstar FundInvestor newsletter's list of funds that should be on investors' radars for management, process, stewardship, track record, and fees--with the most combined investments in those sectors. Naturally, most have poor recent performance because of their investments in those lagging sectors.
Lateef LIMAX doesn’t own any energy names, but it has a huge 36% of assets investment in industrials. Because it doesn’t have energy, performance has merely been mediocre of late. The fund tends to focus a little higher on the quality spectrum than Delafield, as it has both industrials such as Westinghouse Air Brake Technologies WAB alongside growth and technology sector favorites such as
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