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Disclaimer: I am long T. Rowe Price, and it constitutes a not insignificant portion of my portfolio.

Hello all,

I would like to bring up a subject it seems no one here wants to talk about, T. Rowe Price. It seems that the managers of this portfolio are doing their best to forget that it is included in this portfolio. Given this indifference to the company, perhaps we should consider whether the company should be held here at all.

Going back to when this was the Cash King portfolio, we can easily see how T. Rowe entered. It's position as a Cash King is, I think, unasaillable, and I must salute whomever decided it belonged to that portfolio. The days of the Cash King portfolio are, however, past, and this is now the Rule Maker Portfolio. Despite its wonderful financial characteristics and business model, T. Rowe is clearly not a Rule Maker -- they areperhaps the third or fourth most dominant player in their industry (at best).

My request then? Drop T. Rowe. It's a wonderful company (IMHO -- I own quite a bit myself), but not fit for this portfolio. Let the managers of the Rule Maker Portfolio put their energies into Rule Makers, and not feel obligated to hold T. Rowe.

And, moreover, maybe this will stop all the whining about the market performance of T. Rowe over the last couple of years -- a performance which has badly lagged the fundamental performance of the company.

Cheers,
soui
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I agree with you 100%. I recently sold half of my position in TROW because I have never fully believed it was a dominant company. It's not even included in the NOW 50 Index.



Buck
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I agree with you 100%. I recently sold half of my position in TROW because I have never fully believed it was a dominant company. It's not even included in the NOW 50 Index.

If your decision making process is to only look (bah on foes of the split infinitive!) at companies that are dominant in their industry, (which, I may note, is among the Rule Maker Portfolio's principles) then I agree with your reasoning.

I am not selling it, because I really like the fundamentals. I was just hoping that the RM would adhere more closely to its principles -- plus, it's a little painful to see absolutely no commentary on T. Rwoe's last quarter (a very nice one by the way). At least if they don't own it, I won't expect the RM managers to comment on it.

Cheers,
soui
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I agree that T.Rowe Price is a great company. However I sold my holdings in it at the beginning of this year.

When I made myself write down my reasons for holding each stock at the beginning of the year I wrote "Great financials and growing earnings, but it is not growing its inflows. A market downturn could hurt its 20% earnings growth. This a good conservative investment that gives me diversification, but do I want or need that? No. Sell.

I was over diversified and T.Rowe Price was not growing in the manner that I demand of my other holdings.
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For those that read the Beginner's board as well as this one I apologize for the duplicate post.

One thing that I've read recently about T. Rowe that was not mentioned in tonight's report is that the inflow of new money over the last year has been pretty slow. The growth in funds under management is more attributable to growth of existing funds than it is to new money.

Also, here's a link to an article I read on TROW recently that I found to be of interest: http://moneycentral.msn.com/articles/invest/funds/5062.asp

Personally, unlike Zeke, I won't be recommending we add more of this one any time soon.

Phil
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