RILLINOIS
RE: "75% from the highs is truly significant volatility. At what point does significant volatility turn into a bad investment?"
To me, the significant volatility you note could also indicate extraordinary profit potential for the fund. In judging whether or not the fund is "a bad investment", my focus is on the viability of the concept underlying the fund's extremely narrow focus, not on its significant volatility.
Those who stick with the fund and add to it on extreme weakness likely believe that business will increasingly use B2B e-Commerce over the existing internet and the future faster fiber optic internet II to increase efficiency, cut costs, and better connect their Global operations. Of course you'd have to believe that all of these objectives will likely be realized over the next 5 to 10 years.
Also, believers would place confidence in portfolio manager Kevin Landis based on his stellar record with other Firsthand Funds (sum annual returns as high as 145%).
RE: "Also, are you saying that Bob is not accountable for his recommendations to aggressive investors?"
Not at all. I'm saying that IHO the recommendation, like all of his recommendations, should be judged at the end of the period of the recommendation (in 5-10 years - however it unfolds), or, at the future point in time he drops the recommendation and advises to sell - whichever point arrives first.
It's like the QQQ trade. The fact that he extended the time frame for the trade does not bother me so long as the trade ultimately works out for a reasonable profit. Most are in this to make money, not to sit in judge of Bob with the purpose of declaring "GOTCHA" whenever possible.
RE: "a few short weeks after the initial recommendation, Bob was boasting over the radio and in the newsletter about how the fund was already up more than 20% in just a short period of time"
Anyone who has followed Bob over the long term knows "Bob will be Bob". He's in show biz and tries to make his program interesting and sometimes colorful. His achilles' heel is the perception some people get that he is arrogant. Hay we all have that dark side. Our weaknesses are the other side of our strengths.
RE: "my point is simply that Bob acted as if he is not in a similar position. He could have empathized with the caller and told her how he is going about dealing with an e-commerce fund that is down 75% from the highs. He could have told her how he is dealing with having loaded up on the QQQ's at 83 and see them go down to 52."
There you go. "Bob will be Bob". See previous answer.
RE: "LOL"
Yes, "The Great Stain Maker" who also happened to be a grifter" was a joke, a sad joke. Too bad so many fall for the joke for so long. To bad so many still fall for and are hypnotized by the joke.
P |
