When you read the prospectus, you will see lots of gibberish. I will quote from one of my favorite
and highly recommended funds, the Legg Mason Value Trust:
"Principal Investment Strategies
The fund invests primarily in equity securities that in the advisor's opinion, offer the potential
for capital growth. The advisor follows a value discipline in selecting securities, and therefore
seeks to purchase securities at large discounts to the advisor's assessment of their intrinsic
value. Intrinsic value, according to the advisor, is the value of the company measured, to
different extents depending on the type of company, on factors such as, but not limited to, the
discounted value of its projected free cash flows, the company's ability to earn returns on capital
in excess of its cost of capital, private market values of similar companies and the costs to
replicate the business. Qualitative factors, such as an assessment of the company's products,
competitive positioning, strategy, industry economics and dynamics, regulatory frameworks and more,
are also important"
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