Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Support MFO
Donate through PayPal
Open Thread: What Are You Buying/Selling/Pondering
Added 2x inverse world crude SCO in play money portfolio. But continue to be long in energy equities via IYE there which so far has done very well and continues to be strong. The play money portfolio has now become net short with the earlier buys in GLL, TWM, SDS and FXP.
.........I went back and reviewed previous input, suggestions. I have processed the exchange just now. The "opportunity cost" of waiting was gnawing at me, and I've mulled it over, looked at info, considered the input from those who have responded before, and so it's done. It's 6.18% of portfolio. The exit from MJFOX today represents a loss of -5.33% since I bought it just after the New Year of 2014.
While wishing that FMI had a global fund I could invest in, it occurred to me that I might combine equal amounts of FMIJX and BMPEX (plus a touch of QUSOX for foreign small cap) and come up with pretty much the same thing.
@crash, that would be like selling low and buying high on the two funds Though that may be necessary.
I would wait a bit on getting into MAFSX and keep money from MJFOX in cash. As to selling MJFOX, watch the Yen for the rest of week. If it seems to have reversed today and starts dropping, hold MJFOX and ride it up before selling. If Yen resumes strengthening, sell MJFOX. I can't see how Abe can reverse the strengthening in Yen.
Thanks for the response, cman. I had to admit that it was an ill-timed purchase, looking back. I asked myself: could I be doing any worse (within the Matthews menu) than I am with MJFOX? There is ample time to make up the loss. It's only several hundred dollars. I won't have to touch that money for quite a while. Your yen-strategy makes sense, yes.
@Scott - Does the new CEO of Glencore give you pause or change your investment thesis at all?
Tony Hayward is going to be the chairman of the board. Would he be my first choice? Probably not, but I suppose in a way it goes along with Glencore, which I've often said would be something Mr Burns from "The Simpsons" would own. Hayward has been the temp Chairman since the Xstrata merger and I suppose decided to continue along.
Hayward is also the CEO of an energy company financed by Nathaniel Rothschild, but apparently he will be stepping down from that. Speaking of new people changing an investment thesis, I own RIT Capital Partners in London, which is chaired by Jacob Rothschild. (RIT = Rothschild Investment Trust.) If he ever stepped down, that would be a real example of a departure changing an investment thesis.
For me, Glencore is both a tremendous asset play and a strong intelligence play, with Glencore's trading arm. "In the world of physical trading -- buying, transporting and selling the basic stuff the world needs -- Glencore is omnipresent and controversial, just as Goldman is in banking. Bigger than Nestle, Novartis and UBS in terms of revenues, Glencore's network of 2,000 traders, lawyers, accountants and other staff in 40 countries gives it real-time market and political intelligence on everything from oil markets in Central Asia to what sugar's doing in southeast Asia. Young, arrogant, and often brilliant, its staff dominate their market. The firm's top executives have forged alliances with Russian oligarchs and well-connected African mining magnates. Like Goldman, Glencore uses its considerable heft to extract the best possible terms in every deal it does." (http://www.reuters.com/article/2011/02/25/us-glencore-idUSTRE71O1DC20110225)
Glencore's ability to forge relationships and gain business in difficult areas is also appealing.
Aside from the company's mining, they also have hundreds of thousands of acres of owned or leased farmland in foreign countries, as well as the grain handling assets of former Canadian company Viterra (I also continue to own Australian grain handler Graincorp, although that is a larger position and also a VERY long-term one), among other things. I also found the book ("King of Oil: The Secret Lives of Marc Rich") on Marc Rich (who founded what went on to become Glencore and similar co Trafigura) pretty fascinating.
Scott, the daily trading volume of gbnxf is so small, how can you get enough shares?
The only foreign pink sheet stock ("foreign ordinaries") that I ever had trouble with is a company I owned called Chr Hansen. Took a little while to get shares and then when I went to sell them.... (crickets.) Took probably 20-30 minutes before the sell went through.
Do keep in mind that some brokerages charge extra (and a potentially ridiculous, especially when it comes to some countries) amount to buy foreign ordinaries (symbol ends in F.) Brokerages often don't seem to tell you what that extra fee is until they charge you.
Comments
http://portfolios.morningstar.com/fund/holdings?t=MAFSX®ion=usa&culture=en-US
.........I went back and reviewed previous input, suggestions. I have processed the exchange just now. The "opportunity cost" of waiting was gnawing at me, and I've mulled it over, looked at info, considered the input from those who have responded before, and so it's done. It's 6.18% of portfolio. The exit from MJFOX today represents a loss of -5.33% since I bought it just after the New Year of 2014.
I would wait a bit on getting into MAFSX and keep money from MJFOX in cash. As to selling MJFOX, watch the Yen for the rest of week. If it seems to have reversed today and starts dropping, hold MJFOX and ride it up before selling. If Yen resumes strengthening, sell MJFOX. I can't see how Abe can reverse the strengthening in Yen.
Hayward is also the CEO of an energy company financed by Nathaniel Rothschild, but apparently he will be stepping down from that. Speaking of new people changing an investment thesis, I own RIT Capital Partners in London, which is chaired by Jacob Rothschild. (RIT = Rothschild Investment Trust.) If he ever stepped down, that would be a real example of a departure changing an investment thesis.
For me, Glencore is both a tremendous asset play and a strong intelligence play, with Glencore's trading arm. "In the world of physical trading -- buying, transporting and selling the basic stuff the world needs -- Glencore is omnipresent and controversial, just as Goldman is in banking. Bigger than Nestle, Novartis and UBS in terms of revenues, Glencore's network of 2,000 traders, lawyers, accountants and other staff in 40 countries gives it real-time market and political intelligence on everything from oil markets in Central Asia to what sugar's doing in southeast Asia. Young, arrogant, and often brilliant, its staff dominate their market. The firm's top executives have forged alliances with Russian oligarchs and well-connected African mining magnates. Like Goldman, Glencore uses its considerable heft to extract the best possible terms in every deal it does." (http://www.reuters.com/article/2011/02/25/us-glencore-idUSTRE71O1DC20110225)
Glencore's ability to forge relationships and gain business in difficult areas is also appealing.
Aside from the company's mining, they also have hundreds of thousands of acres of owned or leased farmland in foreign countries, as well as the grain handling assets of former Canadian company Viterra (I also continue to own Australian grain handler Graincorp, although that is a larger position and also a VERY long-term one), among other things. I also found the book ("King of Oil: The Secret Lives of Marc Rich") on Marc Rich (who founded what went on to become Glencore and similar co Trafigura) pretty fascinating.
This 2005 article from Businessweek ("The Rich Boys") goes into further detail. http://www.businessweek.com/stories/2005-07-17/the-rich-boys
Glencore remains a long-term holding for me, to the point where I really don't think about it on a day-to-day basis.
Do keep in mind that some brokerages charge extra (and a potentially ridiculous, especially when it comes to some countries) amount to buy foreign ordinaries (symbol ends in F.) Brokerages often don't seem to tell you what that extra fee is until they charge you.