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Author: berkshireone Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 211928  
Subject: Re: Real-World Look-Through: Date: 3/25/2013 3:00 PM
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It occurred to me just as I pressed Post that tracking look through in as much detail as you two are suggesting that you are creating the foundation for another measure, which might give us insight into Wexsler and Combs portfolio management.

We could think of it as Stock-Picking Alpha or something, meaning a kind of Alpha where when a security is sold we might compare capital gains achieved to the calculated look-through earnings, and see how the two numbers compare. A dollar is a dollar and the more the better of course. with your detail we could get an idea of whether a portfolio manager excels at picking good companies versus having a superior ability for good timing (or both or neither).

If capital gains exceeds look through, then maybe we are seeing prowess at market valuation and timing. If the opposite, and results are equally good, then it might be a result of better fundamental analysis of companies and a little less market valuation acuity or timing.

This is not a big thing and usually is too much work, but since you are doing all this anyway it might be interesting To look at when we hear of a big position change.
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