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The WSJ just released a 10 minute video that discusses the very successful investment style of famed economist John Maynard Keynes. Try it. Here is the Link:
I've read a book on Keynes' investment style. After trying a number of styles, in the end he turned out to be a value investor and a very successful one at that. He was in charge of a endowment and an insurance company stock investments in his lifetime.
Years ago, when I was running my own brokerage firm, an opportunity was presented for me to hire a gentleman who possessed a PhD. Shortly after I retained his services, I excitedly told my mentor and best client of what I thought was a hiring coup for my company. His silence let me know he wasn't impressed.
About two weeks later, I received a plain manila envelope from him containing a photocopy of an essay entitled, "From the Garden." It was written in the 1930's about the great economist John Maynard Keynes. In London during this period, a group of very smart and well-connected financiers had convinced Keynes to manage a public fund that they would market. His stellar reputation and credentials would surely bring in many clients, and high fees would flow to these organizers and Keynes. It never occurred to them that Keynes couldn't manage money. During a short period of time, the value of the assets garnered by these individuals and entrusted to Keynes dwindled away. He was quietly removed from the management of the portfolio and returned to his previous role as an economist.
Reply to @PatShuff: Keynes has gone almost bankrupt a couple of times before converted to being a value investor. After that he has done wonders for Kings College endowment and the insurance company funds he was affiliated with. I'll find the book on my bookself and post it here. It is a pretty thin small book. But very interesting nevertheless.
However, I agree that not all economist, PhD can manage funds. We see many such examples. Even Dr. Hussman is struggling mightily.
Comments
Regards,
Ted
http://online.wsj.com/article/SB10001424052702304177104577313810084976558.html?mod=WSJ_Markets_LEFTTopStories#printMode
About two weeks later, I received a plain manila envelope from him containing a photocopy of an essay entitled, "From the Garden." It was written in the 1930's about the great economist John Maynard Keynes. In London during this period, a group of very smart and well-connected financiers had convinced Keynes to manage a public fund that they would market. His stellar reputation and credentials would surely bring in many clients, and high fees would flow to these organizers and Keynes. It never occurred to them that Keynes couldn't manage money. During a short period of time, the value of the assets garnered by these individuals and entrusted to Keynes dwindled away. He was quietly removed from the management of the portfolio and returned to his previous role as an economist.
http://seekingalpha.com/article/12344-concerns-with-the-new-wisdom-tree-etfs
Shades of LTCM Nobelist candlepower, moths to flame.
However, I agree that not all economist, PhD can manage funds. We see many such examples. Even Dr. Hussman is struggling mightily.