How you pay for the City

Ark_Welder

doughnutmachine wrote: »

...it's type of hard to argue that fund managers do a good job of adding value when they turn £100 of assets into £80.

Demonstrates a lack of understanding of what a discount is


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[edit]
The problem with 'evidence' is that it assumes that 'the market' is a desirable investment. When 'the market' is not a desirable investment, the 'evidence' has no merit.

doughnutmachine

Ark_Welder wrote: »

Demonstrates a lack of understanding of what a discount is


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[edit]
The problem with 'evidence' is that it assumes that 'the market' is a desirable investment. When 'the market' is not a desirable investment, the 'evidence' has no relevance.

I think you will find that a discount with respect to investment trusts is how much the IT share price is lower than the net asset value of the IT share.

If you have another definition of "discount" perhaps you could share it with the forum?

Ark_Welder

doughnutmachine wrote: »

I think you will find that a discount with respect to investment trusts is how much the IT share price is lower than the net asset value of the IT share.

If you have another definition of "discount" perhaps you could share it with the forum?

Now you demonstrate a lack of understanding of your own previous comment...:D

doughnutmachine

Ark_Welder wrote: »

Now you demonstrate a lack of understanding of your own previous comment...:D

I really have no idea what point you are trying to make. Perhaps you could think of another way of trying to get your message across?

Ark_Welder

doughnutmachine wrote: »

Perhaps you could think of another way of trying to get your message across?

Several, actually. But as you don't have a genuine interest, and I don't have the need, I'll not bother.

doughnutmachine

Ark_Welder wrote: »

Several, actually. But as you don't have a genuine interest, and I don't have the need, I'll not bother.

ehhhmmm thanks for that. always good having a discussion with a moody teenager.

Ark_Welder

doughnutmachine wrote: »

ehhhmmm thanks for that. always good having a discussion with a moody teenager.

http://www.youtube.com/watch?v=iykbFFDd3ZU

Glen_Clark

doughnutmachine wrote: »

hard to argue that fund managers do a good job of adding value when they turn £100 of assets into £80..

I get your point, but I wouldn't put it quite like that because the assets are still worth £100. But you can't buy the asset without the fund managers, and they are worth minus £20. Its like buying a £100k house with a sitting tenant you cannot get rid of, so it only sells for £80k. But the house is still worth £100k. Its the tenant attached to it that lowers the selling price. (This used to be very common before the Government changed the law to make it easier to evict tenants. Unfortunately they didn't make it so easy to evict fund managers from your assets)

cepheus

Most companies shares are worth (far) more than their assets, it's mainly investment trusts which are discounted. Doesn't this tell you something about the future prospects and abilities of investment trust managers?

Ark_Welder

cepheus wrote: »

...it's mainly investment trusts which are discounted. Doesn't this tell you something about the future prospects and abilities of investment trust managers?

No. It tells us the level of investor sentiment that there is towards a particular trust or sector.

cepheus wrote: »

Most companies shares are worth (far) more than their assets,

A good many investors aren't even aware that a company has a net asset value, never mind the premium that they pay to buy.