Slow and steady investing can chart the way to financial success in stormy economy, says Ariel Capital Management CEO John W. Rogers, Jr

Jet, Dec 10, 2001

"Slow and steady wins the race," that's the motto of Chicago-based Ariel Capital Management, the largest Black-owned fund management company in America.

It's also the motto Black investors would do well to adopt in these turbulent economic times, according to the firm's founder, chairman and CEO John W. Rogers, Jr.

"If you have lost money in a fund and feel that fund is being managed by an experienced portfolio manager, I would stick with it," advises Rogers. "Stay the course. The worst thing to do is panic when everyone else panics and also the worst thing to do is buy when everyone else buys. The most successful investors are those who have the ability to go against the grain and buy when others are selling and sell when others are buying."

And Rogers, 43, is among those most successful investors. Since founding Ariel Capital Management Inc. in 1983, the Princeton University graduate's firm has grown from 2 to 50 employees with over $6 billion in assets under management.

Ariel Capital Management Inc. is investment adviser to the top-rated Ariel Mutual Funds. In addition, it manages separate equity portfolios for institutional clients that include Great-West Life Assurance Co., The Board of Pensions of the Presbyterian Church (U.S.A.), United Airlines, Inc., W.K. Kellogg Foundation Trust and California State Teachers' Retirement System.

So it should come as no surprise that while many investors are reeling from the stormy economy, Rogers says that now the slow and steady course is to buy. Yes buy!

"It's a good time to get your feet wet in the market if you were planning to get started in the market. Maybe phase your investments in over the next six months," he explains. "Don't put it all in next week. Put in some this month, some next month and some the month after."

It is "essential," however, to be well diversified and patient in holding your investments and in selecting them, according to Rogers.

"When we buy a stock, we typically own our average stock 5 to 10 years. It's so rare that you can really find a good company or a good mutual fund; once you find one, stick with it."

Rogers adds, "Patience is also important in your decision-making. When you're making your choices of investments, take your time. Take your time the same as you take your time if you are buying a new car or deciding what college to go to or making career decisions. You want to take your time on all your important decisions, and when it comes to your money, take your time and be patient."