Woodford Concerns

A_T

talexuser wrote: »

This guy appears to agree.
https://www.uknewsdesk.com/alex-brummer-woodford-investors-should-have-better-understood-what-they-were-buying-into/

So it's all Kent Council's fault for trying to withdraw their money from the plummeting fund thereby spoiling it for everyone else. Shame they weren't shrewdies like Brummer - patiently waiting for Woodford to turn the corner.

Aminatidi

talexuser wrote: »

Obviously Nick Train or Terry Smith, you've seen the posts here, decided to invest and looked at some graphs and these look much better than others etc etc. (thinks.... I've got both! :eek:)

I take some comfort in that the stocks and style employed by Train and Smith are becoming fairly common.

I'd like to think, in a perverse way, that if anything happens where I'm thinking "!!!!!! Nick or Terry?!" that it would be wider ranging in impact than those two managers.

Rollinghome

IanManc wrote: »

Alex Brummer had penned a highly readable defenestration of Mr Woodford in the Daily Mail today:
https://www.thisismoney.co.uk/debate/article-7165405/ALEX-BRUMMER-Like-Neil-Woodford-investors-feel-utterly-betrayed.html
Enjoy!

Yes, an extraordinary admission, whether true or not, from the 'City Editor' of a national daily. Presumably when Jupiter dropped Woodford's funds in Oct 2017 and Aviva a month later, that didn't suggest to him that all wasn't well and worth a look.

There's plenty of blame to go round and a good dollop should fall on lazy journos like him who most of the time, like others at Trustnet, Citywire etc, trot out what is often no more than sales pitches from fund managers under the guise of objective jounalism. The public who pay for their wages deserve better, more honest journalism.

eskbanker

Rollinghome wrote: »

There's plenty of blame to go round and a good dollop should fall on lazy journos like him who most of the time, like others at Trustnet, Citywire etc, trot out what is often no more than sales pitches from fund managers under the guise of objective jounalism. The public who pay for their wages deserve better, more honest journalism.

Anyone expecting better objective and more honest journalism only has themselves to blame if they choose to read the Daily Mail instead....

seacaitch

Aminatidi wrote: »

I take some comfort in that the stocks and style employed by Train and Smith are becoming fairly common.

Generally speaking, if invested in a style or theme that's "working" then ideally you want it to be off as many other people's investment radars as possible. The more widely appreciated and invested in by the masses that a theme/style becomes then the closer you are to its days of outperformance ending.

When it comes to my own investments, the less I hear other people talking about them the happier I am, and the more that others talk about them with enthusiasm the more nervous I become.

dividendhero

seacaitch wrote: »

Generally speaking, if invested in a style or theme that's "working" then ideally you want it to be off as many other people's investment radars as possible. The more widely appreciated and invested in by the masses that a theme/style becomes then the closer you are to its days of outperformance ending.

When it comes to my own investments, the less I hear other people talking about them the happier I am, and the more that others talk about them with enthusiasm the more nervous I become.

Are you a tad concerned by passives?

Rollinghome

eskbanker wrote: »

Anyone expecting better objective and more honest journalism only has themselves to blame if they choose to read the Daily Mail instead....

The Daily Mail specialises in journalism for the gullible but isn't the only culprit. Most financial journalism is poor quality and reliant on comment from vested interests. Mark Dampier is, or was, a regular financial columnist for The Independent. Read his old Indi article: "Mark Dampier: 'Never mind forecasts, find a good fund manager' ".

Apparently he likes equity income funds, and tells us that excelling in this area had been CF Woodford Equity Income, Marlborough Multi Cap Income and JO Hambro UK Equity Income. There you go, Independent advice straight from the horse's mouth.

Rollinghome

seacaitch wrote: »

When it comes to my own investments, the less I hear other people talking about them the happier I am, and the more that others talk about them with enthusiasm the more nervous I become.

Bernard Baruch wrote about the prelude to the 1929 crash:

"Taxi drivers told you what to buy. The shoeshine boy could give you a summary of the day's financial news as he worked with rag and polish. An old beggar who regularly patrolled the street in front of my office now gave me tips and, I suppose, spent the money I and others gave him in the market. My cook had a brokerage account and followed the ticker closely."

As they say: 'Avoid taking tips from bellboys' but for newer investors it can be difficult not to be influenced. Fortunately the effect may be less direct with collectives than with direct equity holdings.

MPN

I must admit that my portfolio is a split between passive and active funds/IT’S. However, I do wander how people are very quick to complain when things go wrong even though we all know the markets go up and down:.

As an example I have investments is JEO and TRG and they are both very volatile. In fairness in the past 12 months JEO has fully recovered but my investment in TRG has lost more than the Woodford Equity Income Fund but I’m not complaining just hanging on in there.

I’m just thinking out loud that if people didn’t panic then possibly it may have worked out for NW in the end?

dividendhero

MPN wrote: »

I’m just thinking out loud that if people didn’t panic then possibly it may have worked out for NW in the end?

Woodfords funds were and still are very fragile, they might had survived had there been a siginificant upturn (eg if Brexit revoked) but other than that think they're doomed and a crash would have certainly taken them out