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I expected FAIRX to be down quite a bit. FAIRX only went down -0.02%. AIG (+1%) didn't help that much even though it was featured in Barron's this weekend. Weird.
I expected FAIRX to be down quite a bit. FAIRX only went down -0.02%. AIG (+1%) didn't help that much even though it was featured in Barron's this weekend. Weird.
It works out when you take each stock's weighting and each stock's 4/28 performance. Use a Microsoft Excel Spreadsheet:
AIG: .47 (weighting) X .97 (today's performance) = .4559 BAC: .147 X -6.27% = -.92169 SHLD: .1028 weighting X 4.04% today's performance= .415312 JOE: .0467 X .17% today's performance= .007939 LUK: .0399 X -1.24% today's performance= .04948 FNMAS: .0417 X .19 = .007923 FMCCG, etc.......... add it up, and you get something very close to the -.02 return of FAIRX for today
Take a pass, Charles, just walk away. For now, these TBTF banks are corrupt, criminal enterprises. Maybe consider a return once FASB Rule 157 is rescinded.
A family member puts it this way: "People want to trust banks because they hold our money, but they are all corrupt."
Hey, the new movie Wolf of Wall Street is unsettling too.
I've often said that these banks haven't learned anything from 2008 (and TBTF is still no less an issue now than it was) and book value is a little questionable when they don't seem to have a grasp on all of the specifics of the assets on the books/what's going on in organization - see BAC's announcement this week and Citibank's recent scandal in Mexico.
I wouldn't invest in these names as I don't have trust in them, good luck to those who do.
that's why we hold a mutual fund - to have a PM we trust to make these calls, make adjustments if necessary, and to know when to hold em and when to fold em. i myself have a lot of faith in mr. bruce and do admire his longterm track record.
There is a fine line between the Potters and the Baileys. Old Man Potter might be a shrewd businessman but if he follows the law then one might say he followed the straight and narrow path to success. Bailey had a social conscience. If his investments in people had gone south he would be regarded as too loose with money and should not be in the banking business.
Good thing it was just a movie and a great one at that. I was taught to remove emotion from business and important decisions. That doesn't necessarily make me a Potter. In the end I think we would all hope to be more like George Bailey.
"That error that they made doesn't bother me," says Buffett of Bank of America (BAC), which had to suspend its capital return plan after miscalculating capital levels. "It doesn't change my feeling about Bank of America's risk management one iota."
If we can't trust Warren Buffet, who can we trust?
Comments
BAC situation is embarrassing!
Maybe not as bad as HPQ and Autonomy, but still.
Really thought the only BIG issue still facing BAC was amount of legal fee/settlement(s).
Can't help think this current misstep will not help their case...and, there is certainly much more news to come out here.
Wonder if Mr. Buffet would take a joint interview with Mr. Moynihan now?
Use a Microsoft Excel Spreadsheet:
AIG: .47 (weighting) X .97 (today's performance) = .4559
BAC: .147 X -6.27% = -.92169
SHLD: .1028 weighting X 4.04% today's performance= .415312
JOE: .0467 X .17% today's performance= .007939
LUK: .0399 X -1.24% today's performance= .04948
FNMAS: .0417 X .19 = .007923
FMCCG, etc..........
add it up, and you get something very close to the -.02 return of FAIRX for today
http://www.reuters.com/article/2014/04/29/us-column-markets-saft-idUSBREA3S0GD20140429?feedType=RSS&feedName=PersonalFinance
A family member puts it this way: "People want to trust banks because they hold our money, but they are all corrupt."
Bummer to think about...
Hey, the new movie Wolf of Wall Street is unsettling too.
I wouldn't invest in these names as I don't have trust in them, good luck to those who do.
Don't the Bailey's ultimately triumph?
Similarly, don't all things based on falsehood ultimately get proven wrong? (Take recent Donald Sterling example.)
In the book The Moneychangers, wasn't there a good banker and bad banker?
If people do things for the right reasons, don't good things happen?
I know...a Pollyanna view.
Good thing it was just a movie and a great one at that. I was taught to remove emotion from business and important decisions. That doesn't necessarily make me a Potter. In the end I think we would all hope to be more like George Bailey.
A link from a previous post, and the best description, with which I agree.
What is a psychopath?
"That error that they made doesn't bother me," says Buffett of Bank of America (BAC), which had to suspend its capital return plan after miscalculating capital levels. "It doesn't change my feeling about Bank of America's risk management one iota."
If we can't trust Warren Buffet, who can we trust?
(Hint: David Snowball)