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This is correct only id ALL prices drop 50%, but we know that stocks fall but the price of bread does not. If all stocks drop down 50% overnight, and you sell them, you will be able to buy 2 times less bread.
Can somebody give a convincing argument in favor of PRPFX? For the first 20 years of the existence of this fund it was doing quite poorly. But even a broken clock shows right time twice a day. This fund was doing great lately for the last 10 years o…
Maybe Wasatch people think that it simplifes reporting? I found that quite often the prices of Wasatch funds do not move at all, and then few days later they suddenly jump. Here is the reason: Suppose the fund is up 0.1%, with the price $10 per shar…
More about it:
Fairholme Hires and Reshuffles After Fernandez Departure
It seems the departure of Charlie Fernandez this week from Fairholme Capital Management was part of a larger management reconfiguration at the firm. The management changes were…
I do not know whether it is OK to copy, but here it goes:
Departure is a loss, but this fund's bench has been bolstered, too
A departure reflects Fairholme's curtailed plans more than a change in direction.
Comanager Charlie Fernandez resigned fr…
He will publish a new book in September:
http://www.amazon.com/Smartest-Portfolio-Youll-Ever--Yourself/dp/0399537066/ref=sr_1_1?ie=UTF8&qid=1310319108&sr=8-1
As I said earlier, I myself consider investing with YACKX, I am just playing a role of devil's advocate. For example, if I would look at YACKX record for the first 10 years, from 1992 to 2002, then the graph in M* shows that its performance from 199…
What I have in mind is a certain period, from 1997 to 2000, when the fund had fallen by about 25% whereas S&P500 has grown about 70%. $10.000 invested in S&P500 during this time would give you about $17.000, whereas the same money invested i…
Did you notice that Yacktman was doing VERY poorly for the first five years since opening the fund in 1997? Do you think that they simply learned the lesson, or a similar period of significant underperformance is possible in the future?
