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2021-11-09

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Don't Wait for a Market Crash to Buy This Value Stock<blockquote>不要等到市场崩盘才购买这只价值股票</blockquote>

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{"i18n":{"language":"zh_CN"},"detailType":1,"isChannel":false,"data":{"magic":2,"id":847090533,"tweetId":"847090533","gmtCreate":1636466429723,"gmtModify":1636466429909,"author":{"id":3582024757605194,"idStr":"3582024757605194","authorId":3582024757605194,"authorIdStr":"3582024757605194","name":"Rtanhx","avatar":"https://static.tigerbbs.com/b5f2be776167cfe48a9507b24067ece5","vip":1,"userType":1,"introduction":"","boolIsFan":false,"boolIsHead":false,"crmLevel":11,"crmLevelSwitch":0,"individualDisplayBadges":[],"fanSize":15,"starInvestorFlag":false},"themes":[],"images":[],"coverImages":[],"extraTitle":"","html":"<html><head></head><body>Hmm</body></html>","htmlText":"<html><head></head><body>Hmm</body></html>","text":"Hmm","highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":0,"repostSize":0,"favoriteSize":0,"link":"https://laohu8.com/post/847090533","repostId":1148931135,"repostType":2,"repost":{"id":"1148931135","kind":"news","pubTimestamp":1636465813,"share":"https://www.laohu8.com/m/news/1148931135?lang=zh_CN&edition=full","pubTime":"2021-11-09 21:50","market":"us","language":"en","title":"Don't Wait for a Market Crash to Buy This Value Stock<blockquote>不要等到市场崩盘才购买这只价值股票</blockquote>","url":"https://stock-news.laohu8.com/highlight/detail?id=1148931135","media":"Motley Fool","summary":"If you're waiting for a marketwide sell-off to materialize before plowing into a bunch of new positi","content":"If you're waiting for a marketwide sell-off to materialize before plowing into a bunch of new positions, then kudos. You understand that the market ebbs and flows and that you can and should use these swings to your advantage.<blockquote>如果您正在等待市场范围内的抛售发生，然后再买入一系列新头寸，那么值得称赞。你明白市场有起有落，你可以也应该利用这些波动。</blockquote> If you understand the market is forever rising and falling, though, then you probably also know these ebbs and flows can be rather unpredictable. That means trying to perfectly time your entries can cost more money than it saves because of the gains missed in the meantime. As always, the key is balancing the true risk of stepping into a certain stock with that stock's plausible upside potential.<blockquote>如果你明白市场永远在上涨和下跌，那么你可能也知道这些涨跌是相当不可预测的。这意味着试图完美地安排你的参赛时间可能会花费比它节省的更多的钱，因为在此期间错过了收益。与往常一样，关键是平衡进入某只股票的真实风险与该股票看似合理的上涨潜力。</blockquote> Shares of&nbsp;T. Rowe Price Group(NASDAQ:TROW)&nbsp;are too cheap right now to pass up while waiting for a market crash that may never actually take shape.<blockquote>本公司之股份T.罗普莱斯集团（纳斯达克：TROW）现在太便宜了，不能在等待可能永远不会真正形成的市场崩盘时错过。</blockquote> Nice work if you can get it<blockquote>如果你能得到它，那就干得好</blockquote> You know the organization. T. Rowe Price is, of course, the company that manages a large family of&nbsp;mutual funds&nbsp;with the same name. With $1.6 trillion worth of assets under its management, there's even a good chance that you're a customer.<blockquote>你了解这个组织。当然，T.Rowe Price是管理着一个同名共同基金大家庭的公司。该公司管理着价值1.6万亿美元的资产，您甚至很有可能成为其客户。</blockquote> There's also a good chance you're underestimating the reliability of the mutual fund industry's business model.<blockquote>你也很有可能低估了共同基金行业商业模式的可靠性。</blockquote> Have you ever thought about how fund companies make money? Some charge an upfront load when you enter a new position, but that's not necessarily the primary goal; that load fee is typically shared with the brokerage firm anyway. Rather, fund companies are hoping you become long-term customers so they can collect a recurring management fee, year in and year out. These fees are minimal, usually costing less than 1% of the value of assets held by a particular fund's investment pool. Once you're a fund company's customer, though, it no longer has to fight to bring you into the fold. You're annuitized, in a sense, as long as you stick with that investment -- which investors typically do. And this management fee is automatically collected regardless of a fund's performance.<blockquote>你有没有想过基金公司是怎么赚钱的？有些人在你进入一个新职位时收取前期费用，但这不一定是主要目标；无论如何，装载费通常会与经纪公司分担。相反，基金公司希望你成为长期客户，这样他们就可以年复一年地收取经常性管理费。这些费用很少，通常不到特定基金投资池所持资产价值的1%。然而，一旦你成为基金公司的客户，它就不再需要努力将你纳入其中。从某种意义上说，只要你坚持这项投资，你就可以获得年金——投资者通常会这样做。而且无论基金的业绩如何，这笔管理费都会自动收取。</blockquote> The end result? A steady stream of predictable revenue and profits.<blockquote>最终结果？源源不断的可预测收入和利润。</blockquote> The proof of the pudding<blockquote>布丁的证明</blockquote> You have only to look at T. Rowe Price Group's top and bottom lines for the last year to appreciate the premise. Despite lockdowns and the subsequent economic slowdown, T. Rowe Price managed to beef up 2020's revenue by more than 10%, driving a 15% increase in net operating income and extending a long-standing growth streak.<blockquote>你只需要看看T.Rowe Price Group去年的营收和利润就能理解这个前提。尽管受到封锁和随后的经济放缓，T.Rowe Price仍设法将2020年的收入提高了10%以上，推动净营业收入增长了15%，并延续了长期的增长势头。</blockquote> Makes sense. A slew of bored consumers turned to the stock market for entertainment in lieu of sports and other live events. Indeed, 2020 ushered in the era of meme stocks and rekindled rarities like short squeezes, SPACs, and more. That mania has only been amplified this year.<blockquote>说得通。许多无聊的消费者转向股市寻求娱乐，而不是体育和其他现场活动。事实上，2020年迎来了模因股票时代，并重新点燃了轧空、SPAC等稀有事物。这种狂热在今年被放大了。</blockquote> Except that none of those things generate revenue or earnings for mutual funds. Fund revenue is linked only to the amount of money that fund manages. Because of this, T. Rowe Price's 2020 revenue growth can be mostly attributed to the 12.5% increase in the amount of assets it was managing by the end of the year. And that growth can largely be chalked up to the fact that the&nbsp;S&amp;P 500(SNPINDEX:^GSPC)itself ended 2020 more than 16% above where it ended 2019.<blockquote>只不过这些东西都不会为共同基金带来收入或收益。基金收入仅与基金管理的金额相关。正因为如此，T.Rowe Price 2020年的收入增长主要归功于其截至年底管理的资产数量增长了12.5%。这种增长很大程度上可以归因于这样一个事实：标普500(SNPINDEX：^GSPC)2020年底比2019年底高出16%以上。</blockquote> Connect the dots. Mutual fund companies obviously want the broad market to increase in value, as that drives sales and earnings growth. Even if the market is lousy and falling, though, T. Rowe Price is still going to collect its management fees. Its biggest challenge is simply convincing investors to continue holding their funds even when times are tough for stocks.<blockquote>把这些点连接起来。共同基金公司显然希望大盘增值，因为这会推动销售和盈利增长。不过，即使市场糟糕且下跌，T.Rowe Price仍然会收取管理费。它最大的挑战只是说服投资者即使在股市艰难的时候也继续持有他们的基金。</blockquote> Low valuation, high potential<blockquote>低估值，高潜力</blockquote> The market has rewarded this revenue resiliency, for the record. TROW shares are up nearly 150% from their March 2020 low, easily outpacing the broad market's gains for the same period. Even with this big gain, though, the stock's still seemingly cheap, priced at 17.4 times this year's expected earnings and only 16.5 times next year's per-share earnings estimates. For perspective, the S&amp;P 500 itself is valued at a trailing price/earnings ratio of nearly 30 and a forward-looking P/E ratio of 22.4. T. Rowe Price's current dividend yield of just under 2% is also stronger than the S&amp;P 500's present yield of 1.3% and is&nbsp;clearly well supported&nbsp;by the fund company's reliable revenue and earnings stream.<blockquote>市场对这种收入弹性给予了奖励，这是有记录的。TROW股价较2020年3月低点上涨近150%，轻松超过同期大盘涨幅。不过，即使涨幅如此之大，该股似乎仍然很便宜，其定价为今年预期收益的17.4倍，仅为明年每股收益预期的16.5倍。从长远来看，标普500本身的历史市盈率接近30，前瞻性市盈率为22.4。T.Rowe Price目前的股息收益率略低于2%，也高于标普500目前1.3%的收益率，并且显然得到了基金公司可靠的收入和盈利流的良好支持。</blockquote> Sharp investors will point out that TROW shares are relatively cheap because T. Rowe Price has limited growth prospects. But as noted earlier, for better or worse, a typical fund company's results are mostly a function of the market's overall value.<blockquote>敏锐的投资者会指出，TROW股票相对便宜，因为T.Rowe价格的增长前景有限。但如前所述，无论好坏，典型基金公司的业绩主要取决于市场整体价值。</blockquote> There's a kicker that could drive unexpected growth for the company in the foreseeable future, though. Late last month, T. Rowe Price Group announced plans to acquire Oak Hill Advisors, putting the company deeper into an alternative investment arena where it's not currently well represented. The combination of the two organizations presents compelling cross-selling opportunities. The deal, however, may also hint at other, similar dealmaking to come.<blockquote>不过，在可预见的未来，有一个因素可能会推动该公司出现意想不到的增长。上个月末，T.Rowe Price Group宣布计划收购Oak Hill Advisors，使该公司更深入地进入目前代表性不足的另类投资领域。这两个组织的合并带来了引人注目的交叉销售机会。然而，这笔交易也可能暗示其他类似的交易即将到来。</blockquote> The smart rules still apply<blockquote>smart规则仍然适用</blockquote> Purchasing T. Rowe Price here and now, of course, makes sense only if your portfolio is in need of a financial name. If you're already heavily exposed to the financial sector or hold shares of a rival publicly traded mutual fund family, adding another one isn't necessarily your best move.<blockquote>当然，只有当您的投资组合需要一个财务名称时，此时此地购买T.Rowe Price才有意义。如果您已经大量投资于金融行业或持有竞争对手的公开交易共同基金家族的股票，那么添加另一个不一定是您的最佳举措。</blockquote> If you've got room and reason to add a financial stock to your mix, though, this one's bargain-priced given its high quality.<blockquote>不过，如果您有空间和理由在您的组合中添加金融股，那么鉴于其高质量，这只股票的价格很便宜。</blockquote>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Don't Wait for a Market Crash to Buy This Value Stock<blockquote>不要等到市场崩盘才购买这只价值股票</blockquote></title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 12.5px; color: #7E829C; margin: 0;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nDon't Wait for a Market Crash to Buy This Value Stock<blockquote>不要等到市场崩盘才购买这只价值股票</blockquote>\n</h2>\n<h4 class=\"meta\">\n\nMotley Fool2021-11-09 21:50\n\n</h4>\n</header>\n<article>\nIf you're waiting for a marketwide sell-off to materialize before plowing into a bunch of new positions, then kudos. You understand that the market ebbs and flows and that you can and should use these swings to your advantage.<blockquote>如果您正在等待市场范围内的抛售发生，然后再买入一系列新头寸，那么值得称赞。你明白市场有起有落，你可以也应该利用这些波动。</blockquote> If you understand the market is forever rising and falling, though, then you probably also know these ebbs and flows can be rather unpredictable. That means trying to perfectly time your entries can cost more money than it saves because of the gains missed in the meantime. As always, the key is balancing the true risk of stepping into a certain stock with that stock's plausible upside potential.<blockquote>如果你明白市场永远在上涨和下跌，那么你可能也知道这些涨跌是相当不可预测的。这意味着试图完美地安排你的参赛时间可能会花费比它节省的更多的钱，因为在此期间错过了收益。与往常一样，关键是平衡进入某只股票的真实风险与该股票看似合理的上涨潜力。</blockquote> Shares of&nbsp;T. Rowe Price Group(NASDAQ:TROW)&nbsp;are too cheap right now to pass up while waiting for a market crash that may never actually take shape.<blockquote>本公司之股份T.罗普莱斯集团（纳斯达克：TROW）现在太便宜了，不能在等待可能永远不会真正形成的市场崩盘时错过。</blockquote> Nice work if you can get it<blockquote>如果你能得到它，那就干得好</blockquote> You know the organization. T. Rowe Price is, of course, the company that manages a large family of&nbsp;mutual funds&nbsp;with the same name. With $1.6 trillion worth of assets under its management, there's even a good chance that you're a customer.<blockquote>你了解这个组织。当然，T.Rowe Price是管理着一个同名共同基金大家庭的公司。该公司管理着价值1.6万亿美元的资产，您甚至很有可能成为其客户。</blockquote> There's also a good chance you're underestimating the reliability of the mutual fund industry's business model.<blockquote>你也很有可能低估了共同基金行业商业模式的可靠性。</blockquote> Have you ever thought about how fund companies make money? Some charge an upfront load when you enter a new position, but that's not necessarily the primary goal; that load fee is typically shared with the brokerage firm anyway. Rather, fund companies are hoping you become long-term customers so they can collect a recurring management fee, year in and year out. These fees are minimal, usually costing less than 1% of the value of assets held by a particular fund's investment pool. Once you're a fund company's customer, though, it no longer has to fight to bring you into the fold. You're annuitized, in a sense, as long as you stick with that investment -- which investors typically do. And this management fee is automatically collected regardless of a fund's performance.<blockquote>你有没有想过基金公司是怎么赚钱的？有些人在你进入一个新职位时收取前期费用，但这不一定是主要目标；无论如何，装载费通常会与经纪公司分担。相反，基金公司希望你成为长期客户，这样他们就可以年复一年地收取经常性管理费。这些费用很少，通常不到特定基金投资池所持资产价值的1%。然而，一旦你成为基金公司的客户，它就不再需要努力将你纳入其中。从某种意义上说，只要你坚持这项投资，你就可以获得年金——投资者通常会这样做。而且无论基金的业绩如何，这笔管理费都会自动收取。</blockquote> The end result? A steady stream of predictable revenue and profits.<blockquote>最终结果？源源不断的可预测收入和利润。</blockquote> The proof of the pudding<blockquote>布丁的证明</blockquote> You have only to look at T. Rowe Price Group's top and bottom lines for the last year to appreciate the premise. Despite lockdowns and the subsequent economic slowdown, T. Rowe Price managed to beef up 2020's revenue by more than 10%, driving a 15% increase in net operating income and extending a long-standing growth streak.<blockquote>你只需要看看T.Rowe Price Group去年的营收和利润就能理解这个前提。尽管受到封锁和随后的经济放缓，T.Rowe Price仍设法将2020年的收入提高了10%以上，推动净营业收入增长了15%，并延续了长期的增长势头。</blockquote> Makes sense. A slew of bored consumers turned to the stock market for entertainment in lieu of sports and other live events. Indeed, 2020 ushered in the era of meme stocks and rekindled rarities like short squeezes, SPACs, and more. That mania has only been amplified this year.<blockquote>说得通。许多无聊的消费者转向股市寻求娱乐，而不是体育和其他现场活动。事实上，2020年迎来了模因股票时代，并重新点燃了轧空、SPAC等稀有事物。这种狂热在今年被放大了。</blockquote> Except that none of those things generate revenue or earnings for mutual funds. Fund revenue is linked only to the amount of money that fund manages. Because of this, T. Rowe Price's 2020 revenue growth can be mostly attributed to the 12.5% increase in the amount of assets it was managing by the end of the year. And that growth can largely be chalked up to the fact that the&nbsp;S&amp;P 500(SNPINDEX:^GSPC)itself ended 2020 more than 16% above where it ended 2019.<blockquote>只不过这些东西都不会为共同基金带来收入或收益。基金收入仅与基金管理的金额相关。正因为如此，T.Rowe Price 2020年的收入增长主要归功于其截至年底管理的资产数量增长了12.5%。这种增长很大程度上可以归因于这样一个事实：标普500(SNPINDEX：^GSPC)2020年底比2019年底高出16%以上。</blockquote> Connect the dots. Mutual fund companies obviously want the broad market to increase in value, as that drives sales and earnings growth. Even if the market is lousy and falling, though, T. Rowe Price is still going to collect its management fees. Its biggest challenge is simply convincing investors to continue holding their funds even when times are tough for stocks.<blockquote>把这些点连接起来。共同基金公司显然希望大盘增值，因为这会推动销售和盈利增长。不过，即使市场糟糕且下跌，T.Rowe Price仍然会收取管理费。它最大的挑战只是说服投资者即使在股市艰难的时候也继续持有他们的基金。</blockquote> Low valuation, high potential<blockquote>低估值，高潜力</blockquote> The market has rewarded this revenue resiliency, for the record. TROW shares are up nearly 150% from their March 2020 low, easily outpacing the broad market's gains for the same period. Even with this big gain, though, the stock's still seemingly cheap, priced at 17.4 times this year's expected earnings and only 16.5 times next year's per-share earnings estimates. For perspective, the S&amp;P 500 itself is valued at a trailing price/earnings ratio of nearly 30 and a forward-looking P/E ratio of 22.4. T. Rowe Price's current dividend yield of just under 2% is also stronger than the S&amp;P 500's present yield of 1.3% and is&nbsp;clearly well supported&nbsp;by the fund company's reliable revenue and earnings stream.<blockquote>市场对这种收入弹性给予了奖励，这是有记录的。TROW股价较2020年3月低点上涨近150%，轻松超过同期大盘涨幅。不过，即使涨幅如此之大，该股似乎仍然很便宜，其定价为今年预期收益的17.4倍，仅为明年每股收益预期的16.5倍。从长远来看，标普500本身的历史市盈率接近30，前瞻性市盈率为22.4。T.Rowe Price目前的股息收益率略低于2%，也高于标普500目前1.3%的收益率，并且显然得到了基金公司可靠的收入和盈利流的良好支持。</blockquote> Sharp investors will point out that TROW shares are relatively cheap because T. Rowe Price has limited growth prospects. But as noted earlier, for better or worse, a typical fund company's results are mostly a function of the market's overall value.<blockquote>敏锐的投资者会指出，TROW股票相对便宜，因为T.Rowe价格的增长前景有限。但如前所述，无论好坏，典型基金公司的业绩主要取决于市场整体价值。</blockquote> There's a kicker that could drive unexpected growth for the company in the foreseeable future, though. Late last month, T. Rowe Price Group announced plans to acquire Oak Hill Advisors, putting the company deeper into an alternative investment arena where it's not currently well represented. The combination of the two organizations presents compelling cross-selling opportunities. The deal, however, may also hint at other, similar dealmaking to come.<blockquote>不过，在可预见的未来，有一个因素可能会推动该公司出现意想不到的增长。上个月末，T.Rowe Price Group宣布计划收购Oak Hill Advisors，使该公司更深入地进入目前代表性不足的另类投资领域。这两个组织的合并带来了引人注目的交叉销售机会。然而，这笔交易也可能暗示其他类似的交易即将到来。</blockquote> The smart rules still apply<blockquote>smart规则仍然适用</blockquote> Purchasing T. Rowe Price here and now, of course, makes sense only if your portfolio is in need of a financial name. If you're already heavily exposed to the financial sector or hold shares of a rival publicly traded mutual fund family, adding another one isn't necessarily your best move.<blockquote>当然，只有当您的投资组合需要一个财务名称时，此时此地购买T.Rowe Price才有意义。如果您已经大量投资于金融行业或持有竞争对手的公开交易共同基金家族的股票，那么添加另一个不一定是您的最佳举措。</blockquote> If you've got room and reason to add a financial stock to your mix, though, this one's bargain-priced given its high quality.<blockquote>不过，如果您有空间和理由在您的组合中添加金融股，那么鉴于其高质量，这只股票的价格很便宜。</blockquote>\n<div class=\"bt-text\">\n\n\n 来源：<a href=\"https://www.fool.com/investing/2021/11/09/dont-wait-for-market-crash-buy-this-value-stock/\">Motley Fool</a>\n为提升您的阅读体验，我们对本页面进行了排版优化\n\n\n</div>\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TROW":"普信集团"},"source_url":"https://www.fool.com/investing/2021/11/09/dont-wait-for-market-crash-buy-this-value-stock/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1148931135","content_text":"If you're waiting for a marketwide sell-off to materialize before plowing into a bunch of new positions, then kudos. You understand that the market ebbs and flows and that you can and should use these swings to your advantage.\nIf you understand the market is forever rising and falling, though, then you probably also know these ebbs and flows can be rather unpredictable. That means trying to perfectly time your entries can cost more money than it saves because of the gains missed in the meantime. As always, the key is balancing the true risk of stepping into a certain stock with that stock's plausible upside potential.\nShares of T. Rowe Price Group(NASDAQ:TROW) are too cheap right now to pass up while waiting for a market crash that may never actually take shape.\nNice work if you can get it\nYou know the organization. T. Rowe Price is, of course, the company that manages a large family of mutual funds with the same name. With $1.6 trillion worth of assets under its management, there's even a good chance that you're a customer.\nThere's also a good chance you're underestimating the reliability of the mutual fund industry's business model.\nHave you ever thought about how fund companies make money? Some charge an upfront load when you enter a new position, but that's not necessarily the primary goal; that load fee is typically shared with the brokerage firm anyway. Rather, fund companies are hoping you become long-term customers so they can collect a recurring management fee, year in and year out. These fees are minimal, usually costing less than 1% of the value of assets held by a particular fund's investment pool. Once you're a fund company's customer, though, it no longer has to fight to bring you into the fold. You're annuitized, in a sense, as long as you stick with that investment -- which investors typically do. And this management fee is automatically collected regardless of a fund's performance.\nThe end result? A steady stream of predictable revenue and profits.\nThe proof of the pudding\nYou have only to look at T. Rowe Price Group's top and bottom lines for the last year to appreciate the premise. Despite lockdowns and the subsequent economic slowdown, T. Rowe Price managed to beef up 2020's revenue by more than 10%, driving a 15% increase in net operating income and extending a long-standing growth streak.\nMakes sense. A slew of bored consumers turned to the stock market for entertainment in lieu of sports and other live events. Indeed, 2020 ushered in the era of meme stocks and rekindled rarities like short squeezes, SPACs, and more. That mania has only been amplified this year.\nExcept that none of those things generate revenue or earnings for mutual funds. Fund revenue is linked only to the amount of money that fund manages. Because of this, T. Rowe Price's 2020 revenue growth can be mostly attributed to the 12.5% increase in the amount of assets it was managing by the end of the year. And that growth can largely be chalked up to the fact that the S&P 500(SNPINDEX:^GSPC)itself ended 2020 more than 16% above where it ended 2019.\nConnect the dots. Mutual fund companies obviously want the broad market to increase in value, as that drives sales and earnings growth. Even if the market is lousy and falling, though, T. Rowe Price is still going to collect its management fees. Its biggest challenge is simply convincing investors to continue holding their funds even when times are tough for stocks.\nLow valuation, high potential\nThe market has rewarded this revenue resiliency, for the record. TROW shares are up nearly 150% from their March 2020 low, easily outpacing the broad market's gains for the same period. Even with this big gain, though, the stock's still seemingly cheap, priced at 17.4 times this year's expected earnings and only 16.5 times next year's per-share earnings estimates. For perspective, the S&P 500 itself is valued at a trailing price/earnings ratio of nearly 30 and a forward-looking P/E ratio of 22.4. T. Rowe Price's current dividend yield of just under 2% is also stronger than the S&P 500's present yield of 1.3% and is clearly well supported by the fund company's reliable revenue and earnings stream.\nSharp investors will point out that TROW shares are relatively cheap because T. Rowe Price has limited growth prospects. But as noted earlier, for better or worse, a typical fund company's results are mostly a function of the market's overall value.\nThere's a kicker that could drive unexpected growth for the company in the foreseeable future, though. Late last month, T. Rowe Price Group announced plans to acquire Oak Hill Advisors, putting the company deeper into an alternative investment arena where it's not currently well represented. The combination of the two organizations presents compelling cross-selling opportunities. The deal, however, may also hint at other, similar dealmaking to come.\nThe smart rules still apply\nPurchasing T. Rowe Price here and now, of course, makes sense only if your portfolio is in need of a financial name. If you're already heavily exposed to the financial sector or hold shares of a rival publicly traded mutual fund family, adding another one isn't necessarily your best move.\nIf you've got room and reason to add a financial stock to your mix, though, this one's bargain-priced given its high quality.","news_type":1,"symbols_score_info":{"TROW":0.9}},"isVote":1,"tweetType":1,"viewCount":2496,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"CN","currentLanguage":"CN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":3,"xxTargetLangEnum":"ZH_CN"},"commentList":[],"isCommentEnd":true,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/847090533"}