Of course it's going to take time, and it should take everyone time. We'll look closely at Intel's earnings at our earliest opportunity, as well, and we'll be sending more money to Intel as soon as we receive the DRP enrollment form. Now Randy continues with his series on valuation. Although the Fool spends a lot of time calling mutual funds into question because of their typically subpar performance, I personally believe that if run properly the fund business is a great business. Even with more and more people start managing their own money, for the vast majority of Americans mutual funds continue to be an important part of their retirement planning.
Mutual funds are very efficient vehicles for retirement plans.
Although revenues and earnings are important, the way to measure the worth of a fund company is to first look at its assets under management. Revenues and earnings come from assets under management. For a mutual fund company to grow the bottom line, its management needs to increase assets under management, increase the average fees being garnered from the assets under management, or some combination of the two. With equity funds having the highest asset management fees in the mutual fund universe, this means that the real growth will come from large companies with a robust lineup of market-beating equity funds. These are the companies that will continue to grow assets at a record pace as they steal market share from their competitors, driving both revenues and earnings growth.