Woodford Concerns

bowlhead99

Karatekid wrote: »

I am down 5K atm. Absolutely gutted

Ouch - combined with your other thread, this hasn't been your lucky year.

Still, the most expensive mistakes are often the ones from which we learn the most.

Rheumatoid

talexuser wrote: »

Unfortunately a lot of investors will lose confidence because of this and may pull out of the market altogether. Many of those that see the sense in staying may well come to that same conclusion. Do your own research, read around about the fund and its contents, if not, stick to trackers.

I was already a fan of trackers but this has made me wary of managed funds and my ability to identify when things might be going wrong. I don't have many but may well shift more in to trackers.

Thrugelmir

Sailtheworld wrote: »

Woodford is an extreme case but give it a few weeks and people will be back to paying handsomely to invest in the next flavour of the month.

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.

Sailtheworld

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.

Not only do I agree but I'd like to congratulate you on managing to fit so many metaphors into such a short post.

Thrugelmir

talexuser wrote: »

Unfortunately a lot of investors will lose confidence because of this and may pull out of the market altogether. Many of those that see the sense in staying may well come to that same conclusion. Do your own research, read around about the fund and its contents, if not, stick to trackers.

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.

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