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Catching the Currents

Traders Magazine, July 2008

Michael Scotti

Bob Gauvain, director of U.S. trading at Pioneer Investments in Boston, doesn't have to look far for insights into investing or trading. His firm's Pioneer Fund was launched by legendary value investor Phil Carret in 1928, making it among the first mutual funds. An original $10,000 fund investment became $8 million. Carret was an icon for value investors everywhere-including Warren Buffet, who said Carret "had the best long-term investment of anyone I know." Carret's nearly 80-year-old book "The Art of Speculation" is a classic. For Gauvain, some of the wisdom of the firm's founder is within reach in the writings of Carret, who died in 1998 at the age of 101. Or it could come from a conversation with current Pioneer Fund manager John Carey, for whom Gauvain traded for earlier in his career. One quote from Carret's book is as relevant today for traders as it was when it was written, given the recent volatility. However, the context is different nowadays. Carret wrote in 1930: "Like the ocean, the stock market is never still."

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