Paul, can I ask you 2 questions?
I rarely post on this board, but follow it, because it is an interesting insightful board. As much as I look into value, I tend to favor growth. However, I have taken a somewhat large position in a closed end mutual fund (TY) trading at about 11% discount, and with an expense ratio of .6%. Seems like better bang for the buck than an index fund. And I really do mean to buy and hold this fund.
Anyway, my questions from following this board. You seem to have a pretty consistent approach to investing.
1. What is your turnover? My vague impression is that you are fairly high, but high turnover is usually more associated with technical trading.
2. Are you doing better than whatever is the most appropriate benchmark index fund? In other words, have you found a chink in the random walk theory that you can consistently exploit?
I ask these questions with respect and curiosity. My own yearly turnover has been around 30%-50%, and although I have been fortunate enough to do better than the Nasdaq for the past five years or more (which only means also that I have gone down less than 65% since the peak), but feel I would have done better if I had a higher turnover (rather than keeping stocks too long after they run up). Yet, the theorists are pretty unified in saying that high turnover is the mark of a misdirected investing strategy. I'm curious to have your thoughts on this subject.
GTW |
