AN INCONVENIENT TRUTH
If they made a movie about your home, you’d go see it. Well – they have: An Inconvenient Truth. Investors particularly should go see it. The implications for the long term are vast.
WHO KILLED THE ELECTRIC CAR?
That movie opens June 28. Watch the trailer here.
THE LITTLE BOOK THAT BEATS THE MARKET
John McCoy: ‘OAKLX is the Oakmark Select Fund, not the Oakview Select Fund.’
Robert Levy: ‘Your reader writes that OAKLX has a philosophy very similar to Greenblatt’s. It really doesn’t. They don’t rebuy different stocks every year. They concentrate in larger companies. And, over the past four years they really haven’t had a standout record. There is a fund that does operate similarly to ‘The Magic Formula.’ It’s actually mentioned in Greenblatt’s book but not by name. It’s Hennessy Cornerstone Growth, which picks a certain number of stocks each year (50 I think) based on a formula. He then buys new ones every year or keeps the same ones that meet his criteria. It’s volatile but has a good long term record.’
Jeff Covey: ‘I can second Dan Flikkema’s initial experience with the magic formula.
After my first two rounds of putting $1,000 into each of five magically-selected stocks, I’m down 8.6%. I realize wild swings in both directions are to be expected, but watching $862.02 fly away feels almost dirty after a couple of years of investing in Vanguard funds.’
A GRAND TIME
Matt Ball: ‘I don’t know why you keep saying it is a great time to be rich in America. Under Clinton/Gore, the markets hit new records basically every month. Now, most markets are below where they were when Bush took office, the dollar has collapsed, and our country has trillions of dollars more debt. I’d bet that the vast majority of the rich did much better under Clinton/Gore.’
☞ Well, if you were getting $10 million a year in dividends back then, you probably still are – but now you’re paying $2.4 million less in taxes of them.
But I see your point.
Now, seriously: go see Al Gore’s movie. Especially if you are not an Al Gore fan. You may be surprised; you will almost surely not be bored; and in any event, you owe it to your kids.
Quote of the Day
Years ago, in the Carter term, a stockbroker tried to explain what Schlumberger did. 'It goes to 100,' the broker said, exaggerating only a little bit. 'Then it splits three-for-two and goes back to 100 again.'~GRANT'S Interest Rate Observer
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