Wednesday, May 04, 2005

Legg Mason chalks up 28% quarterly profit growth - Financial - Specialty Finance - Financial Services - Mutual Funds - Earnings

Legg Mason is gathering assets like no other firm. Assets under management increased during the year by $86.5 Billion, a 30% increase. The company manages $372 Billion.

My family buys our stocks through discount brokers. However, we hold shares in the Legg Mason Value Trust inside IRA and Custodian accounts. As my many comments have told you, I am not a fan of high fee mutual funds but the Legg Mason Value Trust, while fighting off a drag of almost 2%, has beaten the S&P for 14 years in a row. I have not calculated our total return during those years but it is obviously quite high. This 14 year performance beats odds of millions to 1!

Instead of investing in the funds, consider LM as a stock holding. There are no fees to hold the stock and the cost to buy 10 shares or 10,000 shares is $5 at BrownCo. Take a look at the long term chart. $3 invested 20 years ago would be about $77 now!