yielder wrote:Yabbut you did have a reason, didn't you?
Yeah, ignorance. To which the great oracle has this advice:
Warren Buffett wrote:By periodically investing in an index fund, for example, the know-nothing investor can actually out-perform most investment professionals. Paradoxically, when "dumb" money acknowledges its limitations, it ceases to be dumb.
I've (mostly) learned
How do you define reputable manager?
I said "reputable [fund] company." That both PH&N and Vanguard meet my criteria, the most important of which is to put the interests of the investor ahead of the fundco, doesn't mean there aren't others. There are.
Managing by committee has risks as well - group think.
But it's less likely that the star manager will up and leave. Nothing is risk free. Ya pays yer money and ya takes yer chances. PH&N owned Bre-X when that fraud was exposed. They're human like everyone else.
Given that the fund isn't restricted to Canadian securities despite its name, it's open to currency bets gone wrong & market timing gone wrong.
One more reason why I'd not do it again. That's still not a good reason to sell though.
And they place pretty heavy sector and stock bets. There's plenty of room to get it wrong. Personally, I think that +20% in just two stocks (RY & MFC) and 53% in one sector is nuts and risky as hell. Shit happens.
Which is why it's only ~3% of our portfolio.
A lot of the outperformance comes in the past 10 years. For the longest time, an investor would have been better off with the index and not PH&N.
Thank you for reinforcing the point that you can't reliably chose funds (or managers) based on their 10-year performance numbers
And you're a true believer.
You're making a mountain out of a molehill. My target for US equities is 13%±5%. Last time I looked, about a month ago, I was at 8.9%.
(But if you want something to be
ed about, I've been watching the loonie soar higher and higher (to almost 0.91 earlier today) before I pull the trigger on more US equity. Yeah, I'm human too. And yeah this too could backfire.)
How'd we get to agreement so fast?
Dunno. I thought the Cadsby quote in my original post essentially said just that
Sedulously eschew obfuscatory hyperverbosity and prolixity.