November 8, 2017

Mutual Funds: an asset gathering business run by the thick skinned with no skin in the game?

A Dart throwing monkey can do better than that. The only difference is monkeys work for PEANUTS, without a TEAM and do not give speeches.

This is the reason my friend does not like this industry. According to Manish, it is an Asset gathering business run by thick skinned no skin in the game individuals.

These guys have the audacity to shed off the 2008 blood of the dead from their clothes, wear a new robe and come on a podium and boast off their team expertise and domain expertise and benchmark beating returns.

I recently read a study where a multibillion dollar hedge fund asks each an expert, one in coal, other in pharmacy, third in chemicals, fourth in banking and so on…. to provide their highest conviction and the best single idea to form as 15-20 stock portfolio.  Yet that portfolio, does worse than mediocre. It turns out that in investing, while simple, but not easy, nobody is an expert.
We are less or more lucky, and those who have the discipline tend to do better.

Read more at Foxy Funds, sneaky answers at IIM Lucknow Investment Summit

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