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Summary Probably the most relevant guru to turn to in the times of economic crisis, especially a recession. Thomas Rowe Price cut his teeth battling the The Great Depression and clearly the most imporyant lesson he claims to have learnt is not to stay away from equities but to embrace them.

Probably the most relevant guru to turn to in the times of economic crisis, especially a recession. Thomas Rowe Price cut his teeth battling the The Great Depression and clearly the most imporyant lesson he claims to have learnt is not to stay away from equities but to embrace them. He is also considered the father of growth investing.

Watching the market from the bottom, Price could really appreciate the cyclical nature of the market and also see through the fear induced pessimism during bad times. When this perception was cleared for him, he started taking bold investment decisions by investing in long-term stocks. He would typically focus on an individual stock and reckoned that the management of the company played an important part in the investment decision. He also used a variety of investment tools but preferred the qualitative aspects as well.

It was in 1937 that he founded T Rowe Price Associates and defied convention by charging fees based on investments that clients had with the firm, not commissions. Price believed in the prosperity of his client’s, lied the firm’s proserity too. Here are some nuggets of wisdom from T Rowe Price:

* It is better to be early than too late in recognising the passing of one era, the waning of old investment favorites and the advent of a new era affording new opportunities for the investor

* Every business is manmade. It is a result of individuals. It reflects the personalities and the business philosophy of the founders and those who have directed its affairs throughout its existence. If you want to have an understanding of any business, it is important to know the background of the people who started it and directed its past and the hopes and ambitions of those who are planning its future

* Buy stocks of growing businesses, managed by people of vision, who understand significant social and economic trends and who are preparing for the future through intelligent R&D

* Sell when the company no longer meets your buying criteria

* If we do well for the client, we’ll be taken care of

* Change is the investor’s only certainty Changing social, political and economic trends as well as trends of industries and companies requires change in the selection of shares in business enterprises

* No one can see ahead three years, let alone five or ten. Competition, new inventions — all kinds of things