Good ol' Fairholme @Shostakovich - I just plucked these two items quickly off a google search. However I am of the opinion that former CEO Eddie Lampert basically drove it into the ground. I never did understand why Berkowitz was so enamored with him other than he saw prospects for all the real estate controlled by Sears and later Seritage Growth Properties.
1) What happened to Sears Holdings?
It was the 20th-largest retailing company in the United States in 20
15. It filed for Chapter
11 bankruptcy on October
15, 20
18, and sold its assets to ESL Investments in 20
19. The new owner moved Sears assets to its newly formed subsidiary Transformco and after that, Sears Holdings Corporation was closed.
2) What caused the downfall of Sears?
The Downfall of Sears: A Failure to Embrace Digital ...
Sears' inability to execute on delivering these omnichannel experiences is just one of the many ways this former retail hero let down its once-booming customer base. Sears ultimately failed because of its reluctance to fully believe in the consequences of a rapidly changing retail landscape.
Bloomberg Wall Street Week
Good ol' Fairholme @bee - that was my understanding as well. The 'maybe' is still the part to be determined or emphasized I suppose. I wonder how much will be left for the shareholders after the law firms take their cut. I'm thinking that after
10 some years of litigation there won't be a lot left to divide up.
Buy Sell Why: ad infinitum. hank,
That's a nice short-term profit!
More importantly, it speaks to the desirability of holding / trading equities inside a tax-sheltered account. Otherwise there would be serious tax consequences.
WealthTrack Show
Buy Sell Why: ad infinitum. (I’m moving these comments first made in the euphoric markets thread to the “Buy / Sell” thread instead where they better belong.)
Sold all 3 stocks owned Friday. NSRGY: Averaged IN @$102 / OUT @$105.50. Decent 7-week gain. Also sold GHC and CNS which I reported buying on June 26. Both had risen 8-10% since I bought them (not bad for 17 days). Tired of the toys for now. Funds are so much easier to work with and vastly less risky. I think the first 2 stocks mentioned above have further to run. The third (CNS) appears to be overvalued - unless it’s under consideration as an acquisition - as is sometimes rumored.
Proceeds went to open a stake in GAA , a Cambria fund managed by Meb Faber, who also runs an etf with the symbol ”TOKE”. (What could possibly go wrong here?)
Added - I have also gradually reduced my equity exposure (as determined by Fido’s screener) from 45% a few weeks ago to about 37% as of today.
Rotation City. U.S. equity and bonds I own XMHQ but I am hesitant to recommend non-active in the SMID space. But SMID ETFs in a trading account are OK.
I think the X's make an interesting contrast to the pricey boutiques Barrons likes to tout. As yogi's charts point out, mayflies are in season.
I don't have a trading account, but there are reasons I gave FMIMX a headstart on the 5th, and won't hold momentum in the IRA. It should go without saying that people should stick to what they are comfortable owning. But as my grandfather used to say, if it's worth saying once its worth repeating from time to time.
I find XMHQ's thesis simple to understand. I suspect that many active managers consider the factors in their rule set. Of course, it only has a five-year track record to weigh.
Dinky linky:
XMHQ is a passively-managed portfolio of 80 securities that tracks the S&P mid-cap 400 Quality Index. The equities are selected based on the highest quality score, calculated by the following three equally-weighted fundamental factors: (1) return-on-equity (2) accruals ratio, and (3) financial leverage ratio. The index is being weighted by the total of its quality score multiplied by its market capitalization and is rebalanced semi-annually. Prior to June 24, 2019, the fund traded as Invesco Russell mid-cap Equal Weight ETF (EQWM) and followed the Russell mid-cap Equal Weight Index.
I'm supposed to be dealing with the garage, so enough procrastinating.
"Markets have false sense of security" ”There is speculative excess today relative to recent years.” - David Giroux, T. Rowe Price
(From Barron’s “Mid-Year Roundtable” July 15 issue)
Brilliant deduction, Watson!
Giroux’s Picks: Aurora Innovation / AUR, Danaher / DHR, Revvity / RVTY
And he still likes utilities.
Rotation City. U.S. equity and bonds XMHQ is something I will be keeping in the IRA. The current strategy is only good for the past five years. As of yesterday, it is leading SPY over the past five, three, one, and YTD periods. I also own it in the taxable. It is just about 15% tech.
FMIMX is another I am keeping in the IRA. It is currently the largest holding in my IRA since LC's are split between funds. The recent interest in small caps has bumped it ahead of FBALX and PRWCX for now.
I have been looking at XMMO for the taxable for a while. As with XMHQ, the strategy has only been in place the last five years. I don't know why M* and Lipper don't account for this, but they don't.
XMMO has also been running ahead of SPY for five years now, and well ahead over the last twelve months and YTD. Given its makeup, it is likely susceptible to capital gains as holdings graduate to the 500 index. It is 15% tech. I have been holding off due to an unpleasant experience with PTH, a momentum health fund.
Like a lot of SMID's these funds are coming off three-month doldrums and are slightly under 52 week highs.
Rotation City. U.S. equity and bonds
Thoughts on PSTL, O and PFE? @Crash - "AMLP does not issue a K-
1 rather it reports on a
1099 for taxes. AMLP also provides qualified dividends, and a portion of distributions are tax-deferred."
You may have had it confused with MPLX which does issue a K-
1.
Good ol' Fairholme
Rotation City. U.S. equity and bonds Info from Schwab 5/31 which may interest you.
Cash 16%
79 % Micro + SC
134 % Turnover
My thought - can they handle a large inflow of $$$ ?
The Week in Charts | Charlie Bilello
Rotation City. U.S. equity and bonds @BaluBaluSCV AUERX has been on our watch list for about a year. Probably shoulda bought it back then. The ER has always been a bit of a turnoff for us but the performance, like you said, has been very good for the past 5 years.
Considering it and a few others, including some SCG funds
yogi listed in this week's
Barron's summary.
https://www.barrons.com/articles/nvidia-broadcom-meta-stocks-to-buy-roundtable-68451d5e?mod=djem_b_magazine_20240713HISGX/HASGX
CTSAX/CTSIX
JSJAX/JSJIX
CWSAX/CWSGX
HRSRX/HRSMX
We have not reviewed any of these and have no comment on any of them yet.
Having however very recently jettisoned SCG NEAGX to reduce Tech exposure and risk, not sure we want to venture too deep back into SCs...yet. Will be looking for one with low Tech exposure. Note that AUERX has only 7.8% in Tech.
Also considering a broader stroke approach via equal weighted index funds RSP/VADAX, or simply doing nothing!
Let's see what next week holds RE: what CNBC this week dubbed, the (sic) "Great Rotation"!
The Week in Charts | Charlie Bilello The Week in Charts (07/12/24)The most important charts and themes in markets, including...
00:00 Intro
00:
15 Topics
0
1:
11 Down Goes Inflation
08:23 Here Come the Rate Cuts
16:50 The Rotation Heard Round the World
22:58 An All-Time High a Day
24:50 Last
10 Years: Fundamental Gains vs. Share Price Gains
27:25 Costco's Highest Valuation Ever
29:45 Nike's Biggest Drawdown Since 2000
3
1:29 The Most Important Chart in an Economy
Video
MRFOX A quick update -
June Fund Facts and commentary are out.
https://marshfieldfunds.com/fund-facts/https://marshfieldfunds.com/commentary/25% cash
"While the cash we now hold . . . clips our wings a bit in terms of our ability to keep pace with the currents propelling today’s market, we don’t care. In taking the long view, we choose to embrace discretion over temporary gains, happy to exchange probabilistically fleeting prices for the optionality of cash and the relative safety of lower altitudes and reduced turbulence."
(Is there a middle finger image in there I missed?!)
Managers do not disclose how much they invest in the fund, except to state that they own more than $
1M - pretty standard language. I was looking to find the actual amount invested / owned - a few fund managers do such a disclosure, though not common.
This fund managers also manage separate accounts with total assets of $4.8B spread over 5,200 accounts. The fund AUM is <$900M. Not sure why we had a discussion about the fund potentially closing around $
1B - it does not really matter.
https://marshfieldfunds.com/wp-content/uploads/2024/01/2023-1229-Marshfield-SAI-final.pdf
