Long-term stock picks and investing strategy from Parnassus manager Lori Keith - Business Insider

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Lori Keith's mutual fund has grown 98,000% in 12 years by focusing on unflashy companies. She told us about 7 such stocks that thrived in the recession — and will do even better in the recovery.

Become an InsiderLori Keith has established a 12-year track record of outsize returns at the Parnassus Mid-Cap Fund without investing in flashy, explosive growth names.

"That may not be the high flyers that many investors are piling into, but these are companies that are really focused on durable growth," she told Business Insider in an exclusive interview. "There's a multi-year runway with good visibility into the earnings stream." And her results have attracted plenty of attention. At the start of Keith's tenure in October 2008, the fund had $6 million in assets under management, according to Parnassus. At the end of the third quarter, the was $5.9 billion, an increase of rough 98,000%.

"They are also investing very heavily into technology, both on digitizing their trucks and modernizing those, as well as rolling out a number of software programs such as routing software that allows them to really drive efficiency," she said. "There's very much a steady top line growth story here, but also a margin and expansionary story as they're investing in technology.

 

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