My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.

Smooth Sailin'

This fund navigates well, even in rough waters.
Magazine Contributor
2 min read

This story appears in the March 2004 issue of Entrepreneur. Subscribe »

Look through the record books, and you won't find many funds whose portfolio managers have been at the helm since inception-or that have a record spanning a couple of decades that ranks tops in performance. The Clipper Fund, however, scores on all three counts.

James H. Gipson started the Clipper Fund in 1984 and has steered this nondiversified fund through bear and bull markets ever since. Year to date through December 8, 2003, the fund was up 14.02 percent for 2003. Since inception, its average annual total return is 15.7 percent.

When selecting stocks for the fund's portfolio, Gipson looks for value. "Our perspective is not so much what it will earn next quarter or next year, but the worth of the business to a rational private buyer," he says. The fund uses valuation models to determine that worth. Then, once a stock rises to its intrinsic value (the price Gipson and his team estimate its worth at), it gets sold.

Typically, you'll find between 20 and 35 securities in the Clipper Fund portfolio. The fund's price of admission is high-$25,000 is the minimum for opening a regular account. But decide to add this fund to a qualified retirement account, and you'll need only $3,000. Even better, automatic investment plans can be started with a commitment of $150 per month after the initial minimum is invested. That's pretty attractive for a fund that has stayed the course throughout most of its life.

Dian Vujovich is an author, syndicated columnist and publisher of fund investing site

More from Entrepreneur

Learn to be a better leader and develop successful marketing and branding strategies with Dr. Patti Fletcher's help.
In as little as seven months, the Entrepreneur Authors program will turn your ideas and expertise into a professionally presented book.
Create your business plan in half the time with twice the impact using Entrepreneur's BIZ PLANNING PLUS powered by LivePlan. Try risk free for 60 days.

Latest on Entrepreneur