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@BaluBalu, I don't have anything to do with M* screens anymore. I'm strictly on MFO premium. So I can't speak to what factors M* looks at when they score quality. I will say that funds based on their strategies seldom turn up in the screens I like to run.
I bought SPGP back in June of 2023 for the taxable account. I can't say if it's really an alternative to MRFOX. Seem like a different kettle of fish altogether. I tend to love things I buy low. So it will probably stay in the taxable forever.
I'm not looking at buying anything right now except MM's or USFR. Buffet's not even buying his own stock.
Well. It's not turning up in any of the screens I've been running lately. But I'm not buying any of those funds either. I just tack them onto my watch list.
@WABAC FWIW: The correlation between MRFOX and SPGP is .87 (So it's not really an alternative); MRFOX LT APR is 16.4%; SPGP is 14.4%; STDEV MRFOX 13.2; SPGP 16.4; MRFOX = Great Owl; SPGP No. Also, SPGP has underperformed the SP500 YTD, 1yr.; 3yr.; and 5yr.; but outperformed for 10yr. by .83%. Perhaps this information is helpful. Best.
@WABAC FWIW: The correlation between MRFOX and SPGP is .87 (So it's not really an alternative); MRFOX LT APR is 16.4%; SPGP is 14.4%; STDEV MRFOX 13.2; SPGP 16.4; MRFOX = Great Owl; SPGP No. Also, SPGP has underperformed the SP500 YTD, 1yr.; 3yr.; and 5yr.; but outperformed for 10yr. by .83%. Perhaps this information is helpful. Best.
I would have been surprised if it was an alternative. If I knew what went into M*'s definition of quality I'ld be surprised if those factors weren't in MFO Premium. I spent many years working with data, among other things, so running screens is my idea of fun.
The rest explains why it's not turning up in my screens these days, and why it's not in the IRA. It's not a purchase I rue; but I wouldn't recommend it to anyone else either.
For those wondering, I'm just treading water today. Not buying or selling unless something happens. Tomorrow may be a different day, but unless there's a good opportunity somewhere, I'll probably still be sitting on my hands.
Edit: I did buy some more scotch yesterday, though.
For those wondering, I'm just treading water today. Not buying or selling unless something happens. Tomorrow may be a different day, but unless there's a good opportunity somewhere, I'll probably still be sitting on my hands.
Edit: I did buy some more scotch yesterday, though.
I’m holding off on any new scotch purchases. If my candidate wins it’ll be a bottle of Glenfarclas at $75-$80. Should she lose, it’ll be Cutty for $25.
Trading? Sold LCORX a week ago as part of an age related risk mitigation strategy. (FWIW - M* recently lowered their medalitist rating on both this one and LCR - not that I give their assessment much credence.)
I don’t know much about it, but SPHQ looks attractive. Invesco quality screens seem pretty effective on MCs. SPHQ may be a blend fund, but it scores relatively high on value.
Just now, IAT (domestic Regional Banks ETF) +0.82%. I use that one for comparison against my holding, --- BHB--- which is up wildly today, but, hey: it was way overdue after several days down and treading water.....
ET midstream oil/gas LP is way more connected to oil prices than anyone wants to admit. Right now, it's down 6 cents from a new 52-week high, today.
I am doing nothing, just enjoying the ride today. Keen to keep up with election returns. Macallan 12-year and a case of Heineken on hand. What sort of country will we wake up to, once the final tally is in? Worrisome.
Spectating, regarding D. Sherman's new baby: AlphaCentric Real Income Fund.
Considering DL Sauron's new baby: OFTRA OneFundtoRuleThemAll. Forged by DTrump's elves in the volcanic bowels of Mt. Maga, this will surely be the last fund that anyone will ever want or need.
@WABAC, I am yet to use my MFO premium account. I need to set aside time to learn and use it, rather than going with the old habit of using M* premium.
@BaluBalu MFOP is vastly superior to M*. It's easy to learn and navigate. You'll have to register at MFO with a user name and password. Weekly display periods: Month-To-Date (MTD) and Weeks-To-Date (WTD), YTD plus MTD . It costs $120.
Orders placed to close out PBA and SOBO. Reason? Oil imports to/through the US from Canada may be endangered with the proverbial 'drill baby drill' attitude starting in 2025 ... and the SOBO Keystone pipeline may face tarriffs bringing Canadian oil to the Gulf Coast. (PBA was always a speculative income hold for me, but @ Schwab you can't DRIP, so I'm not feeling too bad about letting it go for now)
Might re-enter PBA at some point if/when they make a play for the TMX - depending on how well the deal is structured w/the Canadian government.
Market breadth today is not consistent with price action of some of the indices’ would indicate. MOAT which currently occupies the mid cap value box sucked today with 0.8% gain.
@BaluBalu: MOAT’s largest allocation is now to healthcare (22%), not a hot sector these days. Mid-caps XMMO, XMHQ and VLIFX all had good days, in contrast. I have wished that Van Eck or another fund company would offer an ETF based on the M* Wide Moat Composite Index, currently 131 wide-moat stocks. This index has outperformed the Wide Moat Focus Index on which MOAT is based. As previously reported, I have been a seller of MOAT in recent months.
@BaluBalu: MOAT’s largest allocation is now to healthcare (22%), not a hot sector these days. Mid-caps XMMO, XMHQ and VLIFX all had good days, in contrast. I have wished that Van Eck or another fund company would offer an ETF based on the M* Wide Moat Composite Index, currently 131 wide-moat stocks. This index has outperformed the Wide Moat Focus Index on which MOAT is based. As previously reported, I have been a seller of MOAT in recent months.
Sadly, I know that about MOAT's allocation (and I posted it today elsewhere) because I carry it as a full position in my taxable account. I thought MOAT as a buy and forget holding in my portfolio and hence it is in my taxable account. My hope was it would start performing when mid-caps perform but that has been an elusive dream. I have too many positions in my taxable account I would like to sell. (Time to give up my US citizenship so I can sell these some day.)
Thanks for your additional thoughts and for sharing your strategy. Please do alert me when the Moat Composite index is offered in an ETF. Did you try writing to Van Eck about your good idea? They are always looking to launch new ETFs.
@BenWP and @BaluBalu, follow this link and click on the Comp tab. It looks like Van Eck has at least five other moaty funds.
I know. At some point, I went through all the indices and investment strategies offered by M* and was surprised that they all, except MOAT, were subpar. I talked myself into sticking with MOAT. How we all convince ourselves that something / someone is unique.
@BaluBalu: thanks for the idea. I had not thought of contacting a company about offering a new fund. The outperformance of the Composite Index may very well due to the Mag 7 and other high-fliers being well represented. History tells us that these stocks can’t stay on a tear forever. I wish I understood better how various weighting schemes work and how (hypothetically) one could recommend one or the other method to employ for a new fund. Unfortunately, I’m a humanités guy, weak in math.
MOAT had only one stumble shortly after it began trading, the methodology and reconstitution rules got tweaked, and success followed. It then outperformed the S&P 500 for many years and I was really pleased. I thought recent travails were temporary, but I’ve lost faith. Sounds as though you have substantial gains. I try to tell myself that gains are a good thing and that some of them will be offset by the sales of my bone-headed choices.
@BaluBalu: I had the same problem getting the other charting apps I tried to recognize the index symbols. I should have warned you about that. I’ll go back to M* on my desktop to see if it works there.
Comparing the 3-yr performance of the index and MOAT using average annual returns as provided by M* as well as the relative quintile performance of the two, shows that MOAT’ s underperformance occurred in 2020 and 2021. The index had a much greater drawdown in 2022, but it rebounded sharply while MOAT was certainly positive after 2022, it was sluggish compared to the rest of the market. Obviously, without the real performance of a fund to compare to MOAT, contrasting the two has methodological weaknesses.
Market is at an alltime superhigh and a good friend (not good enough!) tells me he is coming into a mil (+/-) in Jan if not before, and what should he considering doing with by way of investing.
He has no short-term need (I may advise him to just splurge and spend a little) and is in his 50s.
As he is with ML I am tempted just to tell him, on any dip next year, just go 50-50 PWRCX and FPACX, or maybe a nontrivial chunk in, you know, QQQ, and call it a day and not watch it. Other thoughts?
Comments
I bought SPGP back in June of 2023 for the taxable account. I can't say if it's really an alternative to MRFOX. Seem like a different kettle of fish altogether. I tend to love things I buy low. So it will probably stay in the taxable forever.
I'm not looking at buying anything right now except MM's or USFR. Buffet's not even buying his own stock.
The rest explains why it's not turning up in my screens these days, and why it's not in the IRA.
Edit: I did buy some more scotch yesterday, though.
Trading? Sold LCORX a week ago as part of an age related risk mitigation strategy. (FWIW - M* recently lowered their medalitist rating on both this one and LCR - not that I give their assessment much credence.)
ET midstream oil/gas LP is way more connected to oil prices than anyone wants to admit. Right now, it's down 6 cents from a new 52-week high, today.
I am doing nothing, just enjoying the ride today. Keen to keep up with election returns. Macallan 12-year and a case of Heineken on hand. What sort of country will we wake up to, once the final tally is in? Worrisome.
Spectating, regarding D. Sherman's new baby: AlphaCentric Real Income Fund.
Might re-enter PBA at some point if/when they make a play for the TMX - depending on how well the deal is structured w/the Canadian government.
Thanks for your additional thoughts and for sharing your strategy. Please do alert me when the Moat Composite index is offered in an ETF. Did you try writing to Van Eck about your good idea? They are always looking to launch new ETFs.
HSGFX Down -3.86% today. Down -10% YTD. Down. Down. Down.
And Yet, $300+ Mil AUM. Go figure.
As always, appreciate the help.
MOAT had only one stumble shortly after it began trading, the methodology and reconstitution rules got tweaked, and success followed. It then outperformed the S&P 500 for many years and I was really pleased. I thought recent travails were temporary, but I’ve lost faith. Sounds as though you have substantial gains. I try to tell myself that gains are a good thing and that some of them will be offset by the sales of my bone-headed choices.
Do you mind sharing the ticker for the composite index or share a long term comparative chart showing both the Composite and Focus?
BTW, I would rate my investing skill as average at best with a lot of room for improvement. Almost all my needed improvement is behavioral.
Thanks.
Then I will sit and stare at this really unusual amount of cash awaiting significant dip, to repurchase the etfs at least.
MSDIMWMT. You’ll find all the relevant data and a chart therein.
https://indexes.morningstar.com/indexes/details/morningstar-wide-moat-composite-FSUSA09PF6?currency=USD&variant=TR&tab=overview
Comparing the 3-yr performance of the index and MOAT using average annual returns as provided by M* as well as the relative quintile performance of the two, shows that MOAT’ s underperformance occurred in 2020 and 2021. The index had a much greater drawdown in 2022, but it rebounded sharply while MOAT was certainly positive after 2022, it was sluggish compared to the rest of the market. Obviously, without the real performance of a fund to compare to MOAT, contrasting the two has methodological weaknesses.
He has no short-term need (I may advise him to just splurge and spend a little) and is in his 50s.
As he is with ML I am tempted just to tell him, on any dip next year, just go 50-50 PWRCX and FPACX, or maybe a nontrivial chunk in, you know, QQQ, and call it a day and not watch it. Other thoughts?
This is probably a buy signal for the rest of you, but just difficult to ignore the market valuation for now.