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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (25144)	10/28/2006 7:19:10 PM
From: Madharry	Respond to of 78752

very nice plug for cnq in this weeks barrons. Think they read our thread? I hope they will write something nice about SIL soon. SIL now over 10% of my portfolio. CNQ 6.5%. I am now reading a new book called The consilient investor. Very interesting reading. Mentions in one chapter the fact that most successful investment managers over time have concentrated portfolios and very low turnover. On the other hand most portfolio manager feel that the way to keep their jobs is to shadow the index performence and try just to beat it by a couple of points every year thus many stocks and high turnover. Over time 75% of the manager underperform the index. So if I ever become a passive investor the thing to do would hold mutual funds of these types of managers. In another chaper he relates a story and concludes that most people are risk averse to the point of being unwilling to risk losing $1 to win $2 if they are right on a 50/50 proposition. Trying to relate this to SIL I feel IM risking around $10 to win $40-50, and the proposition may well be better than 50/50.