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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: combjelly who wrote (319658)	1/9/2007 10:17:44 AM
From: Road Walker	Read Replies (1) \| Respond to of 1576954

re: The discussion started with Shorty's claim that Perot thinks the current 15% capital gains rate is so high he has decided to park his money in tax free bonds. While Perot might have done that, he is more than a little eccentric, it is a dubious proposition for a number of reasons. First of which is that as interest rates increase then the value of his bonds decreases. And (IMHO) over the medium term interest rates are more likely to increase than decrease.

To: combjelly who wrote (319658)	1/9/2007 10:18:27 AM
From: Elroy	Read Replies (1) \| Respond to of 1576954

With $4 billion and hiring a decent manager, Perot should outperform the market and many funds. I don't think it's that easy. It's easy to tell who was an awesome manager over the preceding 10 years, but it's pretty tough to figure out who will be a decent manager. The numbers that get bandied about say a very low percentage of active managers outperform the market over a 3 year period. I'm not saying its better to be in tax free bonds, but outperforming the market (and having the market outperform tax free bonds) just because you have $4 billion is not something you should expect. Keep this in mind when you decide its time to invest your first $4 billion....