Follow-up to MMM-036
The Tool in the Crib for show 36 helps to determine if your mutual fund is an index fund in disguise, or so-called “closet index” fund. The Wall Street Journal on the next day had an article entitled “Professors Shine a Light Into ‘Closet Indexes’: Measurement May Help Investors See How Much of Their Holdings Are Actively Managed — And Not” by Tom Lauricella. They refer to this paper by Antti Petajisto and Martijn Cremers from the Yale School of Management, which will tell you more than you’d most likely want to know about another technique to gauge whether a fund is a closet indexer: the “Active Share” measurement.
Then, after I rebuked Leo Laporte’s hammering of Microsoft’s buyback, Microsoft announced a much larger share buyback and the stock rose some 4%.
On the Sound Investing podcast of 18 August 2006, they talked about show 36’s Guru, Bill Miller, and how he is in danger of not beating the S&P 500 this year. They mentioned that there is likely to be a tax hit to new investors in LMVTX in addition to the high expense ratio.
And after I had my Ten Rules of Active Trading, Cramer on his Real Money radio program had Cramer’s 10 Commandments of Trading.
Wow, I didn’t realize what an influence the Mad Money Machine had on the financial news world! (JUST KIDDING!)
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Paul,
How can you skip a week. What will I do? Geez, I guess I’ll have to listen to Cramer then. Let’s see.. Should I buy KRY or EZM?
The choise is to hard to make. Can you save me?
Engriam
I like the director cut ides…
Looking forward to your next podcast. Have a great time at the podcast show. So hurricane or no hurricane. I wonder what Jim will say about NG stocks and the energy sector this week. I think he is still bullish on the sector.
Paul,
I thought I would let you know, you have helped me become a smart investor. I tried Jim’s method and found it was not for me. I could not keep track of my individual stocks and move on them quickly enough. The only time I enjoyed Jim was when he would recommend stock I already owned. Thats right, the Cramer Krackle. I sold the stock when when that happened. The last 2 years I have been involved in mutual funds. I have found that your tools in the crib have been very benificial to me. I have a much better understanding of the market because of these tools. The different market strategies by the guru of the week help me understand different approaches as well. I like the fact that you do not recommend stocks, but that you make me a wiser investor. BTW, I would still be showing a loss if I stuck with the high profile stocks I had 2 years ago.