Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Pastrami on Rye -- Ignore unavailable to you. Want to Upgrade?

To: Mike McFarland who wrote (221)	2/24/2008 4:55:51 PM
From: Mike McFarland	Read Replies (1) \| Respond to of 379

I was thinking about reconstitution and DFSCX, wondering if orxe might fall out of that fund at a given marketcap, when I came across this interesting article: So committed is DFA to passive investing that it hangs stock certificates of bankrupt companies it has ended up owning on the wall of a trading floor break room. When reporters call about any of the 500 companies in which the firm shows up as a 5 percent or greater shareholder, Wellington pleads ignorance. bloomberg.com Thomas Nugent, chief investment officer at PlanMember Advisors Inc., says DFA made a ``fatal error'' early in its history by focusing on these microcap stocks, the bottom 10 percent of companies by market value. ``Companies in bankruptcy pass through the 10th decile before they go bankrupt,'' he says.