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Investing Books / Rule Breakers, Rule Makers
|Subject: Re: Percentages not points||Date: 5/30/2000 2:19 AM|
|Author: realzen||Number: 232 of 265|
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Thank you so much for the wonderful welcome and the post recommendation!
I must admit that when I sent that post I had still not read the last couple of pages. So in an effort to help out with the typos:
Problem: Page 291 and Page 292 have the same thing about comparing percentages to percentages becoming points not percentages as pointed out in the earlier post.
Solution: Can't really offer a solution here because it is probably dependent on the industry. And unlike the previous post, any solution I offer will be more subjective as opposed to objective and based on the books model.
Problem: Page 297 Microsoft has more than 5 times Sun's cash. Also Page 297 there is a discrepancy in the flow ratio in the text and in the summary list.
Solution: Nuff said.
Problem: Appendix Ranking Rule Makers. Under Pfizer, you mention that the number used in the appendix are from a different period than that used in the text. From what I could see, actually all the other companies in the appendix are using different periods than the text.
Solution: I suggest opening the whole appendix with a little note at the bottom stating numbers used here are different from those in the text.
Okay get ready for the longer one.
Problem: Page 307 “Half of the mutual-fund tragedy is about subpar performance. The other half of the haunting tale is about overly high annual fees.” I believe this might be a bit misleading. However (here comes the disclaimer bit!) I am fairly new to the US market and some of my assumptions may be wrong. To minimize this problem, I will state my assumptions when I'm finished offering the solution.
Solution: I suggest the following albeit more expanded and explained.
“All of the mutual-fund strategy is about subpar performance. The returns from mutual-funds are sub par compared to the index because of three factors. Firstly, the high annual fees. Secondly, the tendency to trade in and out of stocks in search of superior returns gives rise to greater transactions costs. Thirdly, the trading in and out gives rise to tax implications further increasing costs.
In addition, to these three factors, the manager may or may not be good at choosing the right investments.”
Assumptions: Firstly, the mutual fund