Fund managers

jem16

darkpool wrote: »

ehhmmmm no. luck has a bearing on all people.

Did I say otherwise?

darkpool

jem16 wrote: »

Did I say otherwise?

ohh sorry, i thought you said "people who are good at their job make their own luck".

i know a lot of military people, i just don't accept that someone unlucky enough to get blown up by an IED is somehow bad at their job. Unfortunately some people that are very good at their job get unlucky.

Linton

darkpool wrote: »

i've about 70 holdings, i get frequent rights issues etc. it would be difficult to work out my returns.

i suppose my strategy is to buy solid companies with a low pe that are near their low. i buy and hold, the last time i willingly sold a company was over 10 years ago.

Why cant a fund do that and achieve the same index-smashing returns you have (minus a 3% annual charge)?

With 70 solid FTSE holdings its difficult to see why you havent got yourself a closet tracker.

darkpool

Linton wrote: »

Why cant a fund do that and achieve the same index-smashing returns you have (minus a 3% annual charge)?

With 70 solid FTSE holdings its difficult to see why you havent got yourself a closet tracker.

you assume the priority of the fund managers is to make the investors rich. i think their priority is to make themselves rich.

the average fund holds a share for about a year - not buy and hold.

Ark_Welder

darkpool wrote: »

i've about 70 holdings, i get frequent rights issues etc. it would be difficult to work out my returns.

Now I thought the purpose of investing in shares was that the companies would be returning cash rather than taking it off you.

darkpool wrote: »

i suppose my strategy...

Sounds a bit uncertain.

thelawnet

Linton wrote: »

Why cant a fund do that and achieve the same index-smashing returns you have (minus a 3% annual charge)?

Because if you are getting say a 3% real return on the stockmarket, a 3% charge will leave you with nothing at all.

For instance:

25 years at 3% real return means that in 25 years your money will buy twice what it can today, whereas
25 years at 0% means that in 25 years your money can buy exactly what it can today.

Of course it's not a 3% charge, it's about 1.5% plus churn costs. For some more speculative funds costs will be in excess of 3%. For more stable ones the costs are more like 2%. Either way, 2% or 3% annually, is a significant drag on growth.

darkpool

Ark_Welder wrote: »

Now I thought the purpose of investing in shares was that the companies would be returning cash rather than taking it off you.

ehhhmmm, if there is a rights issue and i fancy the shares why should i not buy them?

taking cash off me? you do know you get extra shares when you subscribe to a rights issue?

Ark_Welder

darkpool wrote: »

ehhhmmm, if there is a rights issue and i fancy the shares why should i not buy them?

taking cash off me? you do know you get extra shares when you subscribe to a rights issue?

'nuff said...

Linton

darkpool wrote: »

you assume the priority of the fund managers is to make the investors rich. i think their priority is to make themselves rich.

the average fund holds a share for about a year - not buy and hold.

Surely they would make themselves even richer by getting 3% of the much larger pot they would achieve by following your technique.

Sorry but it seems you have dug yourself into a hole: either it is possible to achieve results much better than a tracker over the long term or your claims to be a remarkably successful investor who is able to achieve a performance far in excess of the Index must be open to question.

darkpool

Linton wrote: »

Surely they would make themselves even richer by getting 3% of the much larger pot they would achieve by following your technique.

Sorry but it seems you have dug yourself into a hole: either it is possible to achieve results much better than a tracker over the long term or your claims to be a remarkably successful investor who is able to achieve a performance far in excess of the Index must be open to question.

to be fair other markets have done better than shares.

i also use a sipp and get a contribution from the government. i also invested a lot when the market collapsed.