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No. of Recommendations: 0
A 32!!

I agree with not feeling to comfortable owning it right now. We should only hang on to this stock if we think that it is a value investment that has nothing fundamentally wrong with it, and is simply out of favor, or has the ability to turn things around. I believe the market is moving towards individual investors, but I also believe that funds will ultimately still grow due to the fact that the growth of number of investors and the amount of monies being invested will nullify the effects of the current trend. There has been more recent news in regards to funds reopening (Vanguard Windsor) due to net withdrawals. This might only be a trend that continues until the fund companies react and offer more vogue type funds such as index funds of various types that have low internal costs (managers are overpaid relative to the value and effort they put forth—no question in my mind). The slowdown of monies being invested in mutual funds is partly because of the low commissions now offered to individual stock investors, and also partly because of the low performance of mutual funds that is more widely publicized.

Now for the answer.

I think we should sell. Not because I believe that TROW will not prosper, but because I strongly believe that our money, and in turn us, will be better served elsewhere. Companies such as Schwab and AMEX offer what TROW does and more. They will benefit from the demographic trends mentioned in TROW's Buy Report and then some. They also don't make their money solely on the heals of the uneducated consumer, or worse yet the consumer who is forced to invest in mutual funds because corporate pension plans don't allow otherwise. I t makes me sick when I see the abundance of wealth accumulated by the founders/managers of CERTAIN mutual fund companies that make their spoils by offering a product that is doomed for underperformance—where the “under” equals their profit. At least AMEX and others alike offer diversified financial services such as RIA arrangements, Internet Brokerage services, and planning in general. Don't get me wrong, I don't dislike all mutual funds. I happen to like sectoring funds and focusing funds that limit their diversity. For someone who has no interest in the market who doesn't have enough $$ to get into a RIA arrangement, a combination of the latter with index funds might not be a bad idea.
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