Buffett, Lynch, Morales? Q&A with Gil Morales

Jul. 02, 2008 12:06 PM ET7 Comments
Stephen Sinclair profile picture
Stephen Sinclair

With great interest I have followed the recent debate on Seeking Alpha on fundamental versus technical analysis.

Peter Lynch and Warren Buffett are often cited as examples of extremely successful money managers who believe technical analysis is hogwash. There are, however, a bevy of talented individuals who have significantly outperformed both Lynch and Buffett, using technical analysis.

Peter Lynch managed the Fidelity Magellan Fund [FMAGX] from 1977 to 1990 where he achieved a compound annual growth rate [CAGR] of about 29%.

Warren Buffett is Chairman of the Board and Chief Executive Officer of Berkshire Hathaway (BRK.A) (BRK.B). Since 1962, Berkshire Hathaway stock has returned a CAGR of about 25%.

One of the strongest performance records of which I am aware has been achieved by Gil Morales. From January 1st, 1998 to December 31st, 2005 Mr. Morales achieved in his personal account a return of 10,904.25%. This would correspond to 5,572.04% net of standard 2%/20% hedge fund fees. This represents a CAGR of 277.40% or 242.88% net of fees.

Gil Morales is the Chief Executive Officer of Gil Morales and Company LLC, a Los Angeles-based registered investment advisory firm, and publisher of The Gilmo Report.

The following is a Q&A with Gil Morales:

(Gil Morales - GM; Stephen Sinclair - SS)

SS: Thank-you for taking the time to speak with me today. There are many investors who may not be familiar with your name. Could you tell me how your career began, where you have worked and your experience as a money manager?

GM: I started out at Merrill Lynch in Beverly Hills, CA in June 1991, a propitious time to start in the business. In 1994 I moved over to PaineWebber where I began to focus on managing client accounts using William J. O’Neil’s CAN SLIM® investment methodology. I quickly achieved Chairman’s Club

This article was written by

Stephen Sinclair profile picture
Stephen J. Sinclair is a qualified Investment Adviser in Canada and has worked for Fidelity Investments and the Royal Bank of Canada. In 2001, he walked away from Bay Street, disillusioned, and set to the task of learning how the stock market really works. He has spent thousands of hours and read hundreds of thousands of financial reports and price / volume charts. Stephen's trading accounts of have seen massive gains over the past few years. From January 2003 through December 2005 he managed a model portfolio publicly. Through this period his model portfolio, Sinclair Aggressive Growth, returned just over 100%, with an alpha of 12. No leverage involved.

Recommended For You

Comments (7)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.