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.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: accountclosed who wrote (43856)	1/18/1999 5:42:00 PM
From: Knighty Tin	Respond to of 132070

AR, That reminds me of when a new VP at my old mutual fund co. solved a huge problem. We had a horrible clearing agent, and once my funds started selling beyond anything the firm had ever before experienced, we built up a major league number of receivables at brokerage firms, at least partially because our back office couldn't process the cash and sales in a timely way. I once had a $400 million plus receivable in my fund. Yuk! Try making money on money you don't have. <G> After I left, the new President and now Chairman, a nice and fairly bright guy, hired an accounting hit man to get things done. About a year later he bragged to me about how efficient they had become. I noticed a wee flaw. Yes, they had cleared up late processing and the receivables mess very well. However, they no longer had any sales. When I was there, my fund alone was selling $20-30 million a day and its high profile increased total family sales to $30-35 million a day. By the time the accounting guy came in, who really did do a good job, sales had fallen to about $4 million a day in all the funds in the group. That is what the internut commerce folks are discovering in reverse. It is much easier to process orders efficiently when you have tiny sales. It is another game when they grow rapidly. MB