Jonnybee I want to know your thoughts on mutual funds
- Thread starter OlecountryDawg
- Start date
I miss Mutual of Omaha's Wild Kingdom
I don't use mutual funds very much, but nothing wrong with them.
I don't use mutual funds very much, but nothing wrong with them.
You're hiring the Jockey v buying horse. Best hired when nobody wants to
own mutual funds v latter stages of bull up trends when winning stocks are topping and too obvious. They're all about the specific fund manager so make certain of that person's specific track record across 3-5 boom-bust-boom cycles. You want a winning jockey up on your horse! A decent growth MF should 2x - 3x every 10-15 years and those are out there if you look hard. The older you are, the more money you need, the greater the investing risk. In other words patience is your friend OR start young. Size matters, too. MF's are restricted from owning more than 6% of a single company's shares. That means that if a MF gets large enough they have a tougher time selecting winners as they max out the limit in better quality stocks and their overall fund performance is diluted because they're required by regs to keep investing. Thus they start owning lesser quality (riskier / underperforming) stocks. A fund with $25-250 million under management is way more nimble than a Magellan and should consistently outperform larger brethren. MF's are great for diversification, filling a niche in a portfolio, access to some markets, smaller investors... less than $250k invested. Higher liquid assets than that and you can get access to money managers but it takes some knowledge to go down that road. If you're real conservative just buy an S&P500 Index Fund (Warren Buffet likes one from Vanguard) or even an S&P500 ETF.
Nothing is fire & forget when it comes to investing. It's like a garden that constantly needs tending to get the best crop yield. Go look up "Making Money In Mutual Funds" by William O'Neil which was written several years back. Those tenants are as trues today they were then. You may be able to order a cd from Investors Business Daily or at investors.com. All the best.
own mutual funds v latter stages of bull up trends when winning stocks are topping and too obvious. They're all about the specific fund manager so make certain of that person's specific track record across 3-5 boom-bust-boom cycles. You want a winning jockey up on your horse! A decent growth MF should 2x - 3x every 10-15 years and those are out there if you look hard. The older you are, the more money you need, the greater the investing risk. In other words patience is your friend OR start young. Size matters, too. MF's are restricted from owning more than 6% of a single company's shares. That means that if a MF gets large enough they have a tougher time selecting winners as they max out the limit in better quality stocks and their overall fund performance is diluted because they're required by regs to keep investing. Thus they start owning lesser quality (riskier / underperforming) stocks. A fund with $25-250 million under management is way more nimble than a Magellan and should consistently outperform larger brethren. MF's are great for diversification, filling a niche in a portfolio, access to some markets, smaller investors... less than $250k invested. Higher liquid assets than that and you can get access to money managers but it takes some knowledge to go down that road. If you're real conservative just buy an S&P500 Index Fund (Warren Buffet likes one from Vanguard) or even an S&P500 ETF.
Nothing is fire & forget when it comes to investing. It's like a garden that constantly needs tending to get the best crop yield. Go look up "Making Money In Mutual Funds" by William O'Neil which was written several years back. Those tenants are as trues today they were then. You may be able to order a cd from Investors Business Daily or at investors.com. All the best.
RoyDawgMercer 4/3/2014: "NEVER buy a transportation company. EVER".....
The capitalizations were all Roy's.
Since 4/3/2014 the Dow Jones Transportation Index is up 19.07%
The Dow Jones US Airline Index is up 49.25%
RoyDawgMercer 8/7/2014: "Markets in confirmed downtrend. Cash is king"
Since 8/7/2014 The S&P 500 is up over 12%, including dividends.
The NASDAQ index is up 15.95%
You should have bought stocks the very day Roy said to sell.
You've made a lot of money if you did the exact opposite of what Roy has said to do.
The restriction Roy states about being limited to 6% of a company's outstanding shares is just plain wrong.
"All the best"
The capitalizations were all Roy's.
Since 4/3/2014 the Dow Jones Transportation Index is up 19.07%
The Dow Jones US Airline Index is up 49.25%
RoyDawgMercer 8/7/2014: "Markets in confirmed downtrend. Cash is king"
Since 8/7/2014 The S&P 500 is up over 12%, including dividends.
The NASDAQ index is up 15.95%
You should have bought stocks the very day Roy said to sell.
You've made a lot of money if you did the exact opposite of what Roy has said to do.
The restriction Roy states about being limited to 6% of a company's outstanding shares is just plain wrong.
"All the best"
Liar POS. "AIR transport", dumbass. In Nov the markets corrected 10%
after drifting sideways to down post my 8/7/14 statement. Just ore more JBD disinformation.
Oh WAIT!! Here's some truth how about your legendary (in only your mind) call on Netflix @ $445 based on all their big plans for expansions. Let's see... one COULD have lost 30% on that BIG tip .... OR one could have bought puts or shorted NFLX instead and made 273% like I did.
BTW - Even if wrong on about everything else, you are indeed correct on no SEC reg re capping individual company share ownership percentages. However, MF prospectus generally sate a percentage ownership rule value set by the fund manager but it's been a looonnnnngggg time since I read a MF prospectus. Common sense says any fund manager would be an idiot to own more than about 10% max in a single company. If one does the risk of the entire fund's performance can easily be dangerously overweighted. I'm still your Daddy.
after drifting sideways to down post my 8/7/14 statement. Just ore more JBD disinformation.
Oh WAIT!! Here's some truth how about your legendary (in only your mind) call on Netflix @ $445 based on all their big plans for expansions. Let's see... one COULD have lost 30% on that BIG tip .... OR one could have bought puts or shorted NFLX instead and made 273% like I did.
BTW - Even if wrong on about everything else, you are indeed correct on no SEC reg re capping individual company share ownership percentages. However, MF prospectus generally sate a percentage ownership rule value set by the fund manager but it's been a looonnnnngggg time since I read a MF prospectus. Common sense says any fund manager would be an idiot to own more than about 10% max in a single company. If one does the risk of the entire fund's performance can easily be dangerously overweighted. I'm still your Daddy.
No Roy. I copied and pasted exactly what you wrote
Everything you said turned out disastrously wrong. You said NEVER buy a transportation company. EVER. You added the capitalization. Instead, they've outperformed the market, and airlines are up 50%.
I don't make stock tips on here like you do. I never made any "call" on Netflix at $445. But you know that. You made that up. I did tell about making 220% earlier in that stock as it happened, however. And I did say I was sad I missed its last surge to all time highs last Fall....but then I didn't mind, because I missed the decline, too. You didn't buy any puts on Netflix, Roy. And their "big plans for expansions" did actually occur.
And you were wrong about the market in August when you said "confirmed downtrend...cash is king." The S&P500 got only 2 1/2% lower from where you stated that. People should have been BUYING stocks while you were telling them to sell. Stock indexes are up 12%-20% in only 7 months since you told them to sell and go to cash.
Not only Did you make up the stuff about funds being limited in how much of a company they can own, you used it as a DISADVATAGE to owning mutual funds....but then later came back and claimed only an "idiot" manager would do it anyway. Lol. And you are further wrong that fund managers "have to keep investing." No they don't. Many manager raise large amounts of cash when they want to. Just more wrong, wrong, wrong information. Why???
"All the best"
Everything you said turned out disastrously wrong. You said NEVER buy a transportation company. EVER. You added the capitalization. Instead, they've outperformed the market, and airlines are up 50%.
I don't make stock tips on here like you do. I never made any "call" on Netflix at $445. But you know that. You made that up. I did tell about making 220% earlier in that stock as it happened, however. And I did say I was sad I missed its last surge to all time highs last Fall....but then I didn't mind, because I missed the decline, too. You didn't buy any puts on Netflix, Roy. And their "big plans for expansions" did actually occur.
And you were wrong about the market in August when you said "confirmed downtrend...cash is king." The S&P500 got only 2 1/2% lower from where you stated that. People should have been BUYING stocks while you were telling them to sell. Stock indexes are up 12%-20% in only 7 months since you told them to sell and go to cash.
Not only Did you make up the stuff about funds being limited in how much of a company they can own, you used it as a DISADVATAGE to owning mutual funds....but then later came back and claimed only an "idiot" manager would do it anyway. Lol. And you are further wrong that fund managers "have to keep investing." No they don't. Many manager raise large amounts of cash when they want to. Just more wrong, wrong, wrong information. Why???
"All the best"
Never been one to interrupt a good fight, but...
back in the 80s/90s when I used a full service broker (and not a very damned good one, I might add: "If you can't eat it, drink it, or smoke it, don't buy it." Missed the huge Nasdaq/Tech run up), amidst all the bad advice he gave me was one pearl: "Buy Fedex as an internet proxy; you get the internet without the tech."
I bought it in the later 90s and sold it a year or two ago, which was a mistake. It was still a seven-banger for me. I think what he said still holds true today, but tough to buy it back at 170 when you sold at 140.
Also interesting that Fedex survived 1999 relatively unscathed.
back in the 80s/90s when I used a full service broker (and not a very damned good one, I might add: "If you can't eat it, drink it, or smoke it, don't buy it." Missed the huge Nasdaq/Tech run up), amidst all the bad advice he gave me was one pearl: "Buy Fedex as an internet proxy; you get the internet without the tech."
I bought it in the later 90s and sold it a year or two ago, which was a mistake. It was still a seven-banger for me. I think what he said still holds true today, but tough to buy it back at 170 when you sold at 140.
Also interesting that Fedex survived 1999 relatively unscathed.
FedEx has been a great transportation stock
But keep in mind that their stock did fall in half during the dot com bust in 99-2000 anyway.
And they lost 3/4 of their value in the latest mark-to-market accounting meltdown.
But they survived those setbacks and like most stocks, have recovered to all-time highs.
But keep in mind that their stock did fall in half during the dot com bust in 99-2000 anyway.
And they lost 3/4 of their value in the latest mark-to-market accounting meltdown.
But they survived those setbacks and like most stocks, have recovered to all-time highs.
Re: FedEx has been a great transportation stock
Maybe I'm seeing this wrong, but the charts I'm using show a 99 high around 56 and subsequent low around 36. And I said RELATIVELY unscathed. Nasdaq's 2000 high of 5000 was followed by a low around 1100. I'm open to correction if wrong.
Maybe I'm seeing this wrong, but the charts I'm using show a 99 high around 56 and subsequent low around 36. And I said RELATIVELY unscathed. Nasdaq's 2000 high of 5000 was followed by a low around 1100. I'm open to correction if wrong.
They fell from nearly $62 in May of 1999 to below $31 in Spring of 2000
So they fell in half during the dot com bust.
Then they lost almost 3/4 of their value in the mark-to-market decline from $120 in FEB 2007 to $35 in March 2009.
But they are at all time highs now.
So they fell in half during the dot com bust.
Then they lost almost 3/4 of their value in the mark-to-market decline from $120 in FEB 2007 to $35 in March 2009.
But they are at all time highs now.
