Hot Tip From Liberty Acorn Skipper Wanger: Real Growth Takes Time

Click on the company name to jump to Wanger's comments on the stock.

Americredit

Cheesecake Factory

Chico's FAS

Christopher & Banks

Eaton Vance

Expeditors International of Washington

Ford Motor

Harley-Davidson

International Game Technology

JDA Software

Michaels Stores

Neuberger Berman

Sears

Weight Watchers

Ralph Wanger says he won't be giving us "hot stock picks for the next hour."

Wanger would likely disapprove of awkwardly trudging out the cliche about the acorn becoming the mighty oak, but it's useful to enlighten our readers for a key point: Real growth takes time.

Wanger knows that better than just about anyone managing money. He has been the skipper of the (ACRNX)Liberty Acorn fund since 1970, and he has amassed a phenomenal record by spotting small-cap companies poised for growth, scooping them up early and letting them ride. A list of his top-25 holdings reads like a Who's Who of ten-baggers (a ten-bagger, for the hour-to-hour crowd, is a stock you hold until the stock appreciates tenfold -- what a concept!).

Wanger jokes that he takes the slow and steady approach because he doesn't like to work that hard. But don't be fooled by the self-deprecating humor, which is also on display in his "Squirrel Chatter" commentary on the Wanger Web site and in his 1997 book, A Zebra in Lion Country. Wanger and his team, which includes Charles McQuaid as co-manager since 1995, must be doing some hard work: The fund ranks in the top 10% of its small-cap growth peers for one, three, five and 10-year periods.

In this week's 10 Questions, Wanger discusses his big winners (International Game Technology, Harley-Davidson), one big loser (Americredit) and a few stocks that he thinks will be the next generation of ten-baggers.

1. Where do you see this market and this economy heading?

I believe we are in one giant trading range. The S&P 500 can trade as low as 600 on the downside and as high as 1500 on the upside. I think we will be in this trading range for a minimum of another five years. Along those five years, we will experience lots of vigorous swings, but no particular overall trends.