Investing Tips From All-Star Managers

It's 2007, and Morningstar analysts are turning once again to the mutual fund world for a little free advice. Every quarter, mutual funds are required to publish lists of their holdings--and at the end of the year, fund managers offer their ideas on the performance and direction of their funds. They often drop tidbits of investment advice that we can use for our own benefit.Morningstar analystse love to read the shareholder letters of managers they respect as they hunt for opportunities.

This quarter, Morningstar examined the shareholder reports for 15 mutual funds and found a wealth of information.  Morningstar focused on managers search for stocks that trade below their estimates of intrinsic value and provide a margin of safety. While they are not endorsing these mutual funds, these managers follow the examples set by Ben Graham and Warren Buffett. A common complaint seemed to be the lack of bargains in this environment. Good buys are not as abundant as they once were, but some digging still uncovers opportunities.

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