You're watching...
Matthew 25 Fund president Mark Mulholland breaks down how to get the best returns in today's market.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Well thank you for investors who worry about market volatility and who among us doesn't every day you look up -- up a hundred points down 250.
We have a guy who says do not over analyze it -- here's what you should listen to him he's Matthew 25 fund director.
Mark Mulholland joining us -- a Fox Business exclusive from Philadelphia and his performance.
Is out of this world -- a year to date mark your fund is up 28%.
That is besting the benchmark against which you you just yourself that would be the Russell 3000.
Year over year up 45.
I wish up what -- and with few wet and my big question is what does it if there were one thing you pick out mark.
That -- are doing to get these returns what do you think it is.
I just.
State bulletin really stay long this market there is a lot of fear out there and you were you know you can see it in the data come from ICI.
The measures mutual fund flows and there's been net redemptions five and half years out of domestic equity funds.
And on the contrary -- by heart it's the best place today and I just think -- next few years should be very powerful as well.
I'm very glad you brought up the redemptions that means people getting scared and pulling their money out of mutual funds.
That would have been a mistake on balance corrective Mena over the past year we have done so well but if I could count how many people.
How come on this program and we've tried to tell our viewers listen.
The real money makers like the profits of the world and that the Wilbur Ross is of the use of the world.
Have make that money just as everybody was running away correct.
It.
A lot of times it's not trying to be -- Smart it.
If you look at the market bottom in 2009.
-- 2008 earnings were about just under fifty dollars a share in a market bottom around 678.
So it was like twelve times earnings at the bottom and even and peep or saying that's not enough.
But the -- -- you look where we are right now I immediately yes and he's around 14100.
It should learn about a 10203.
On the S&P this year this year -- early really thirteen have fourteen times earnings that's.
Still great valuation -- I -- tell people the market spends about 90% it's time between fourteen and twenty times earnings on PE ratio on the market.
We're net 5% time we're still below -- it's still an opportunity for people it's you know he decide to get over it is good news that you keep seeing in the CEO -- the volatility which is just.
Order to market so we just showed a chart of how you've been outperforming the Russell 3000 -- -- -- everybody but the big things that are in your fund things like Scripps.
Apple -- -- less Google.
You've got JPMorgan.
Berkshire a shares Caterpillar Caterpillar was the worst performer yesterday.
On a day like that do you that well obviously you don't freaked out your long term guy but not.
Are you getting excited on days where the market is in turmoil and in doing so argue riding a wave vs.
Panic gaining and losing your head under the way.
I'll -- I I -- look at everything on -- three to five year cycle and I still believe the next three to five years can be powerful.
And what I -- your thoughts like a Caterpillar.
If you're looking at companies about eight times earnings about five and a quarter times ebitda.
It's a fantastic.
Extremely well run company.
And unable to I would say the fair pricing -- an idea is probably about eight to ten times -- and up efforts here route 105 the ones that I watch.
I wanna just tell viewers want ruled that you live by and not just totally steadfastly but you wait until the stock has lost.
Two days worth and then you -- correct to buy.
Yet a lifetime I'm not a great time -- -- though.
If I had a concrete system but basically if it's if I believe in the company.
And I'm into it you know for to long term cycle.
If I get the couple days negative -- if I have any money come at a -- buy that stock and if you want to look for portfolio you can almost figure out what we're gonna buy.
Afterwards.
-- his fund is up 45%.
Year over year mark we come back again we love the story.
I appreciate -- thank you anything I'm mark Mulholland is Matthew 25 fund director and president good to see you lot.
