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Pastimes : The Justa and Lars Honors Bob Brinker Investment Club Thread -- Ignore unavailable to you. Want to Upgrade?

To: Boca_PETE who wrote (5707)	10/21/2010 3:36:48 PM
From: Kirk ©	Read Replies (1) \| Respond to of 10065

"Sorry you missed the safe ride." Hardly... I was a buyer when that GNMA fund was under $10 but sold it (I think it was about $10.80) and moved that money to TIPS which have done better since then. On 10/13/08 I sold the GNMA fund in my Vanguard ROTH and bought the TIPS fund. My total in that fund is up 23.3% since the change. I don't believe GNMAs are up that much in the last 2 yrs... In the newsletter that I have traded GNMAs in the past, I sold the fund and added some cash to buy individual TIPS. As you see from the fund performance, they have done well... especially with no expense fee to pay. Also, I bought a big chunk of GNMAs with my own money in 2000 when I took profits in my tech stocks. It gave me many years of good income. I also had it for some IRAs. "Your table tells me I get the most return taking the least risk by holding the GNMA Fund." Huh? The least risk on that table would be the money fund. It will give a positive return if interest rates shoot up quickly to "normalize" while the GNMA fund will lose money. GNMAs pay more but they have higher risk. "To whom have you made such recommendations and through what vehicle were such recommendations made?" I have two newsletters with different target audiences and slightly different portfolios. The most conservative one "The Retirement Advisor" that I write with David Korn, doesn't have REITs and never had GNMAs but the bond index funds we recommend have done great. Unlike Brinker who lost money in all his fixed income only portfolios in 2008, our fixed income only portfolio made money. If it makes you feel any better trying to be rude, I didn't expect the individual TIPS I recommended and purchased on the Jan 15 auction of this year to jump 10% so quickly. How about going on the record here and suggesting if I should book the profits now or hold?

To: Boca_PETE who wrote (5707)	10/21/2010 3:46:38 PM
From: Kirk ©	Respond to of 10065

"1.) Knowing the 4% single stock principle, why would you post such a comparison and tout your brilliance here ("I personally own and have recommended...")? " I guess I could have included Brinker's MSFT which I recall was on his BUY list for individual issues back when I recommended FNSR near the very bottom of the bear market, but Brinker was fully invested and thus had no free cash to buy MSFT at the time. Why I included it... along with money funds is I like to see the whole spectrum of positive investments. Zero risk this year in money funds is not yielding much while high risk in Finisar has, especially since I've taken profits by selling many of the shares purchased during the bear market so I've converted capital gains to my own dividends. I wonder if this shows for non stockcharts subscribers