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Primecap Funds Getting a Nice Boost Today on BB News
What matters is how large a percentage of a fund portfolio the stock constitutes, rather than how large a percentage of the company a fund holds.
For example, VTISX holds roughly the same amount of BB as does VHCOX, about 1.4% of the company. For VTISX, this represent a mere 1% of 1% of the fund. If BB had gone up 100%, i.e. doubled rather than gone up "just" 19.25%, VTISX would have "jumped" 0.01%.
Of the funds above, POAGX has the largest percentage of its portfolio in BB - 1%. So the impact of BB on this fund was 1% x 19.25% = 0.19%.
One can go to M*'s ownership page for BB; once there, click on "concentrated". Aside from a Canadian fund, BB represents no more than 3½% of any fund. At best, that means that BB moved the needle about 0.7%. The only fund I recognize where BB makes up at least 2% of the fund is OAKEX. For that fund, BB added about 0.4%.
I own 100 share of BB and when the shares fell from $57 to $5 I stopped picking stocks. Those shares sits there in my account reminding me how humbling investing can be.
If I understood the world of "put and calls" I might attempt to learn another lesson, but I'm afraid that too would not end well.
Thanks @msf for humbling me further. I usually don't need any help.
Comments
For example, VTISX holds roughly the same amount of BB as does VHCOX, about 1.4% of the company. For VTISX, this represent a mere 1% of 1% of the fund. If BB had gone up 100%, i.e. doubled rather than gone up "just" 19.25%, VTISX would have "jumped" 0.01%.
Of the funds above, POAGX has the largest percentage of its portfolio in BB - 1%. So the impact of BB on this fund was 1% x 19.25% = 0.19%.
One can go to M*'s ownership page for BB; once there, click on "concentrated". Aside from a Canadian fund, BB represents no more than 3½% of any fund. At best, that means that BB moved the needle about 0.7%. The only fund I recognize where BB makes up at least 2% of the fund is OAKEX. For that fund, BB added about 0.4%.
If I understood the world of "put and calls" I might attempt to learn another lesson, but I'm afraid that too would not end well.
Thanks @msf for humbling me further. I usually don't need any help.
Stay Safe, Derf
https://www.primecap.com/literature-and-forms/