Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next
Author: mungofitch Big gold star, 5000 posts Top Favorite Fools Top Recommended Fools Feste Award Winner! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 212849  
Subject: Re: Mr. Market & The Floor Date: 12/13/2012 12:31 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
But why does it benefit the manager at all? Asset retention, right?
Indeed.
...
So is pursuit of asset retention all that different from pursuit of clients' objectives?


In a word, yes.
The best route to asset retention is failing conventionally and not
trying to outperform at all, or even try to manage the money prudently.
In 1999, asset retention and not getting fired meant buying .com stocks,
and that was diametrically opposed to clients' objectives of doing well.
It was in keeping with their short term emotions and myopia, which is a different thing.

Yes, I'm certainly being too harsh. Take me with the usual grain of salt, or more.

Mr Tilson firmly believes that the stock is worth around $180000/share,
and has made this opinion well known. He has backed this up admirably.
Given that the price was in the $120k-130k region for a long time, one
might assume that there as as big a margin of safety as one might
reasonably wish for and he would have built as big an allocation as was
warranted prior to the price jump—if he were good at his job.

I just don't see reasons that are good for clients in increasing the
allocation when the price rises and the value estimate doesn't.
That's simply buying more of something when it gets more expensive.
Wouldn't that normally be a time to reduce allocation, if anything?

Jim
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Smuggling Rice and Garlic
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement