Hi Paul,
Still have not looked up your names--not that I would have anything worthwhile to say..I mean, FPA is a great filter(!)--but wanted to ask about your methods. As I understand it, you let FPA and others
do the heavy lifting, and from their holdings you buy names that you can see are undervalued, and then sell them when they approach your idea of fully valued. About right?
What proportion of your port do you manage like that, all of it, and what proportion is not in stocks? Any long-term holdings? How many positions do you have roughly, and for how long?
Are your results better than FPA's minus their fees and your cap gains taxes?
I notice that find reports often mention their top winners and losers, and there is an element of surprise involved, of luck. The danger of being too concentrated is that you might never get lucky, or have bad luck, but it sounds like that would not be a problem for you..
Sounds like a pretty good system, indeed it is one that I follow myself in theory, unfortunately not in practice. |
