Firecalc slays a strawman, deceives many - Page 3

unclemick · 08-16-2004, 01:49 PM

Mario sent me a blurb the other day - that yield is too high for a utilities fund - until I figure out how he's doing it - I'd be cautious. Morningstar gives them 5 stars - that's often the kiss of death - especially for a Boglehead like me.

I bought his closed end convert in 93 - yielding 12-16% in prior years - it subsequently underperformed for the next ten - still got it - 15.75% yield on original $ plus reinvested div.s - ok for income - but my balanced index beat it for the last ten yrs - NOW going forward

??

Nords · 08-16-2004, 02:31 PM

Leverage & derivatives.

dory36 · 08-16-2004, 04:44 PM

Heh - I've pretty much given up on picking, even with funds.

When The Motley Fool was saying to look ONLY at index funds, they deviated for a while , and recommended the IPS Millenium Fund, at http://www.fool.com/news/foth/2000/foth000224.htm.

I bought when that article appeared. The next 3 years performance? Minus 23%, minus 42%, and minus 28%.

It will take a LONG time for that one to return to the mean!

08-16-2004, 01:49 PM	#41
unclemick Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Jul 2003 Location: north of Kansas City Posts: 5,560	Re: Firecalc slays a strawman, deceives many Mario sent me a blurb the other day - that yield is too high for a utilities fund - until I figure out how he's doing it - I'd be cautious. Morningstar gives them 5 stars - that's often the kiss of death - especially for a Boglehead like me. I bought his closed end convert in 93 - yielding 12-16% in prior years - it subsequently underperformed for the next ten - still got it - 15.75% yield on original $ plus reinvested div.s - ok for income - but my balanced index beat it for the last ten yrs - NOW going forward??

08-16-2004, 02:31 PM	#42
Nords Moderator Emeritus Join Date: Feb 2004 Location: Oahu Posts: 15,752	Two words, Gonzo. Leverage & derivatives. __________________ * * For more info see "About Me" in my profile.

08-16-2004, 04:44 PM	#43
dory36 Early-Retirement.org Founder Developer of FIRECalc Join Date: Jun 2002 Posts: 1,822	Re: Firecalc slays a strawman, deceives many Heh - I've pretty much given up on picking, even with funds. When The Motley Fool was saying to look ONLY at index funds, they deviated for a while , and recommended the IPS Millenium Fund, at http://www.fool.com/news/foth/2000/foth000224.htm. I bought when that article appeared. The next 3 years performance? Minus 23%, minus 42%, and minus 28%. It will take a LONG time for that one to return to the mean! __________________ Often uninformed, seldom undecided. Twenty years from now you will be more disappointed by the things you didn't do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover. Mark Twain

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