Woodford Concerns

itwasntme001

Thrugelmir wrote: »

Some investors will already be chasing the end of the rainbow. Herd mentality determines that. As sure as the sun rises. There'll be another train wreck.

There will always be another train wreck but it probably wont happen to most people. On the whole most managed funds wont be train wrecks but they could underperform.

itwasntme001

Thrugelmir wrote: »

The whole episode illustrates the danger of investing in open ended funds. Like a run on a bank, i.e. Northern Rock. Investors pulling out their money at the some time. Undermines the value of the underlying assets held. Book value has no bearing. It's down to what one of the circling vultures will offer you. Market makers being under no obligation to take any large amount of stock off the funds hands in a single transaction either.

It is only a danger if the underlying assets are illiquid enough to cause a problem. Unless of course the fund becomes huge e.g. Berkshire - which is closed ended anyway!

[Deleted User]

I wouldn't describe the average Woodford investor as a "rainbow chaser." His funds are rather populated with investors from the other end of the spectrum. I feel sorry for them, particularly as some seem to have been "put away" by the conservative financial house who carried their trust.

AnotherJoe

Karatekid wrote: »

I am down 5K atm. Absolutely gutted

Amateur. I've lost much more than that on single share buys before now

Why didn't you exit WEIF / WPCT say a year ago when it was clear they were a disaster zone?

Brian65

eskbanker wrote: »

(Daily Mail) is a bit broad for its most useful purpose, for which there is an alternative of narrower sheets in perforated rolls....

.......True

AnotherJoe

Thrugelmir wrote: »

The whole episode illustrates the danger of investing in open ended funds. Like a run on a bank, i.e. Northern Rock. Investors pulling out their money at the some time. Undermines the value of the underlying assets held. Book value has no bearing. It's down to what one of the circling vultures will offer you. Market makers being under no obligation to take any large amount of stock off the funds hands in a single transaction either.

But that was and has been hugely exaggerated by the preponderance of unlisted [STRIKE]dross[/STRIKE] companies within WEIF

Karatekid

AnotherJoe wrote: »

Amateur. I've lost much more than that on single share buys before now

Why didn't you exit WEIF / WPCT say a year ago when it was clear they were a disaster zone?

Amateur? Don't be a tool

Sailtheworld

itwasntme001 wrote: »

There will always be another train wreck but it probably wont happen to most people. On the whole most managed funds wont be train wrecks but they could underperform.

Paying a fund manager c1% a year for 30 years to underperform is a slow motion train wreck.

Brian65

itwasntme001 wrote: »

All this is probably why many people prefer investing in property - tracks inflation better then stocks, can use leverage, get actual income, have more control in terms of what you buy (even trackers you cant control what you own as companies grow or go bust), is illiquid so much less likely to sell based on emotions, is a real asset that you can see and touch.

Property prices have risen because of Government intervention in the housing market. How confident are you that future governments will continue to restrict supply, and subsidise demand?

Barny1979

Over £1k out of my SIPP