The Club
Yesterday I received my monthly issue of MONEY magazine. This issue has the special feature called "The Ultimate Investment Club" that highlights their picks for the top mutual fund managers. Let's see how their members made money for their shareholders.
My readers know that the only thing that counts in my book is performance and performance means they make money and do NOT lose money so I went back to preview their record since these experts took over. When you see the results of this club you will be glad you did not go on any camping trips with them. Here are six who manage stock mutual funds.
As we go along you must keep in mind that fund managers get paid for the amount of money they have under management and not on how much they make for you.
MONEY magazine has given them titles. I will not mention their names, but will give you the fund along with the stock exchange symbol so you can look it up on the Internet at www.bigcharts.com.
"The Survivor" who manages Seligman Communications Fund (SCICX) since it was founded has seen the share price start at $35 and rise to $54 only to fall back to $15 today. He is surviving with your money, but you are not.
"The Value Master" of Legg Mason Value Trust (LMNVX) sure doesn't know when the value has run out. Under his tutelage the fund has gone from $45 to $78 to $43.
"The Maverick" of CGM Capital Development (LOMCX) has been thrown by his horse. Share price in 1976 started at $10, went to $43 and is now $18. Tough ride for the shareholders.
Now we come to "The Bargain Hunter" who took over management of Oakmark Select (OAKMX) in 2000 when the market was at its peak. It was $22 and went up (!) to $37 and is now trading at $32. He is the only winner in the group. Congratulations.
Another loser is "The Opportunist". This guy should be getting his buy recommendations from cab drivers. He could not do any worse for the Strong Opportunity Fund (SOPVX). It started at $45 and has nothing but a downward journey to its present $29.
For the Brandywine Fund (BRWIX) we have "The Growth Guru". The only thing that grew fat was his wallet off of your money. He took over in 1998 at $45 and it went down to $22 in 1999, then up to $53 and is now $20. Actually he can only be given credit for the advance from $45 to $53.
In all fairness to these losers I did not include any capital gains or dividend payouts which during the few good years they had may have been very good, but probably not good enough to keep you at "even".
There are all kinds of clubs you can join, but obviously this is not one for you. When you see advertising for various mutual funds or how wonderful some fund manager is please look beyond the hype and check out the performance.
Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.
1-888-345-7870; al@mutualfundstrategy.com
.
More Resources
Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exitingMore Stocks & Mutual Funds Information:
Related Articles
Buy and Hold Investment Philosophy
Wall Street has been preaching the doctrine of Buy and Hold forever. The worst part about it is the small investor (and some big ones) actually believe it.
Dont Buy Worldcom! A Guide to Wise Bottom Fishing
Over the past few months, several investment professionals have brought up the topic of the down-and-out company of the day and whether to buy now as a speculation. Last year, K-Mart was the big news, and everyone wanted to know whether this was a good stock play.
Selling Strategies - Setting a Stop Loss
Sometimes the best way of lowering exposure to risk is not to invest at all! However, when we make the decision to jump into the muddy waters of the stock market, its always a good idea to have a life jacket ready, just in case.We all have stories of that "must have" "can't lose" stock that looking back, we didn't really need to buy, and it definitely lost.
Lemmings Are Gathering
Before they go over the cliff to their destruction these little furry ones get together for a party and celebration. Each tells the other how smart he has been with his investments and buying and selling of stocks and real estate.
When Should I Sell?
People are always asking me when should I sell my stock or mutual funds?There are some relatively easy answers to this. In fact, so simple that you won't believe them, but they are things I have learned over the past 30 years as a professional trader on the floor of the commodity exchange in Chicago.
Lies, Damn Lies and Mutual Fund Returns
How many times has this happened to you? You're at a social function and the conversation turns to investing. Pretty soon, people are comparing how well their investments are doing.
Traders, Defend Against the Dreaded Death Spiral.
It has often been said that there is only two ways to get hurt really bad on a stock trade, getting caught in a "death spiral" by not using DTM: Decisive Trade Management in the way of stop loses and having a stock halted on you. Halts you have zero control over.
Mr. Market
I constantly hear the talking heads on CNBC-TV, the radio and other places talking about THE market. Of course, they mean the stock market which actually now is world wide and no longer just concentrated in New York.
Oil Stocks CHK WLL - What Is Their Worth?
(1) CHK stock price $16.74, NAV $32.
The Holy Grail (of Investment)
Every year I go to the Money Show in Orlando, Florida. Thousands attend.
Is Active Trading The Answer?
One of the main reasons many of us get into investing is to become financially independent. Who isn't trying to amass a portfolio with enough income to ensure that we don't have to work when we should be playing golf or traveling the world.
Stops Make Money
During the day I watch CNBC-TV, the stock market channel. Fortunately, I keep the sound muted or I would be hollering at the dumb "experts" being interviewed.
Money, Insanity and Wall Street
Money: the most charged word in the planet. It means something to everyone.
Market Experience of a Naïve Stock Operator
Sometime in the third quarter of 1997, someone told me that I should play the stock market. Knowing nothing about the stock market, I turned to some colleagues to seem to know a lot about it.
Stock and Fund Dividends
When is a dividend not a dividend?The latest thing "conservative" brokers are preaching these days is to buy stocks that pay dividends. Everyone likes dividends.
Eternal Sunshine
There is a current movie entitled "Eternal Sunshine of the Spotless Mind". It is about a man who has had a painful love affair and will do anything to rid his mind of those pain thoughts of a former love.
Living Trust Investing: Income Considerations when the Grantor Dies
A common problem I often see when working with living trust beneficiaries and trustees is the lack of attention in rethinking income strategies in the event of the grantor's death.When the grantor of a living trust dies, the trustee (especially a family member or close friend) sometimes feels reluctant to revise the portfolio, feeling it's an affront to the wishes of the deceased.
Understanding the Bulls and the Bears
If you've ever flipped on the television to CNN Financial or paged through the finance section of your local newspaper, you may have seen or heard references made to "the bulls and the bears." If you didn't know what was meant by those terms, you're about to find out.
Buying Mutual Funds
It looks like the market is ready to start up again so it is time to buy mutual funds, but you only want to invest your money in funds that go up. First, you don't want to start with a loss so be sure to purchase no-load mutual funds.
The Shadow
The Shadow knows. There used to be a radio program called The Shadow where the hero, Lamont Cranston, the Shadow, would overcome the shadowy forces of doom by clouding the vision of those around him.