Putting the "Fun" in "Mutual Fund"

[Guest]

I'll take [i]Things that are going to end in an SEC investigation[/i] for $1,000, Alex.

I joined Mensa about a year ago, and soon after joined the "Mensa Invesitng Club" -- one of the special interest groups in Mensa.

I discovered the partnership has been signifigantly underpreforming the S&P 500 since it was created 3 years ago. I told them I had a better way...

After a hypothetical stock selection competition, where I demonstarted my abilities, I have been elected Stock Selection Chairman (for those familar with mutual funds, this would be the CIO). There are only about 10-12 Mensans who actually have money in the partnership, though since I've been elected, 3 more people have joined.

I am now in charge of my own mutual fund, directing thousands of dollars of my investors. My first purchases were made Friday (after the market tanked, in one of the worst days in the last 20 years).

I got a call from the Committe Chairman congratulating me, and telling me he feels my ambitious goals are reasonable (though most do not). This guy is extraordinaryly wealthy, btw when I first contacted him, I had to go though his assistant & set up a time. It's super DHV to have an assistant.

He has offered more of his financial backing as preformance is demonstrated and more importantly, he knows a great deal of people who would be interested in offering additional support as well....

If I get this thing to a $5 million dollar partnership, a 2% fee is $100k/year. And being on CNBC would be super DHV...way better than Dateline anyway :wink:

Of course anyone here is welcome to join, but the partnership bylaws require membership in Mensa to be a partner.

Regards,

Westfall

[Guest]

That situation is kinda funny. I can see the headlines: Unmanaged S&P index beats fund managed by Mensa.
The guy isint all THAT bright if he's getting smoked by an index that NO ONE manages. Then again, about 2 thirds of Mutual fund managers dont either..... so.....how about them Red Sox?

BTW...that 2% fee dilutes results. If the fund has 10% performance before, it has an 8% ROI after.

[Guest]

Update: Currently tied with the S&P 500.

I've moved the fund largely into the sectors of financials and consumer services--the two most 'beaten up' sectors of the market.

Retail appears to be priced for Armegeadon--as Mr Market, overly concerned about the collapsing credit bubble is spooked that people will stop spending & living beyond their means... As such, I picked up Chico's, Charlotte Russe, and Foot Locker...I'll also likely pick up Sears or Wholefoods.

Many financials are priced way below book value, and are trading at price/CF of < 10. Essentially the pricing reflects a doom & gloom scenerio of the collapse of the capital markets on a scale the world has never seen followed long recession. Personally I don't think that's likely, so I moved the fund into Capital One, Discover, PMI, and Washington Mutual...may also pick up some Bank of America or Etrade.

Now is the time to invest & get rich.

Westfall

[Guest]

[quote="Westfall"]
"Mensa Invesitng Club"[/quote]

Hey Mr. Mensa, you misspelled investing :P :wink:

I am considering buying some Washington Mutual. The banking sector is beaten up and is an excellent time to buy. I already have Wells Fargo. Warren Buffet has Wells Fargo and Bank of America.

WF, how do you determine which stocks to buy? As with me, I usually buy one or two good stocks once a year, picking companies that I determine have have good, long term growth potential. However, this year I am also seeking some stocks to hold just for a year or so.

[Guest]

[quote="Mojo"]I am considering buying some Washington Mutual. The banking sector is beaten up and is an excellent time to buy. I already have Wells Fargo. Warren Buffet has Wells Fargo and Bank of America.

WF, how do you determine which stocks to buy? As with me, I usually buy one or two good stocks once a year, picking companies that I determine have have good, long term growth potential. However, this year I am also seeking some stocks to hold just for a year or so.[/quote]

Washinton Mutual is an outstanding buy--one of the best out there currently. I think it's worth $40+. I am also a big fan of BofA. From time to time, everyone will go into an irrational panic, producing an excellent time for investors with the emotional temperment to realize financial collapse isn't imminent. The world isn't going to end.

I believe stocks are worth the sum of all the future cash flows they will generate (discounted approperately for time). I try to model what I think a company will earn, and base my estimate of a fund's value off those numbers. Then I look for stocks that are selling for signifigantly less.

The only consideration I make when I select a stock is value, as I follow Buffett's approach (A strategy rarely used by investors).

Today was huge for the financially-weighted Mensa fund, so now I am beating the fund by a bit.

Westfall

[Guest]

Mojo, check out Peter Lynch's books as well as The Warren Buffet Way by Robert Hagstrom. Benjamin Graham's stuff is great too, as he tought Buffet.

[Guest]

[quote="Westfall"]
The only consideration I make when I select a stock is value, as I follow Buffett's approach (A strategy rarely used by investors).
[/quote]

Agreed. Studies have shown value investing out performs all others.
Buffet is da' man.

[quote="El Fenix"]Mojo, check out Peter Lynch's books as well as The Warren Buffet Way by Robert Hagstrom. Benjamin Graham's stuff is great too, as he tought Buffet.[/quote]

Cool. Thanks for the recomendations.

[Guest]

Update: Currently beating the S&P like a woman who burned dinner.

My invesment strategy has always been superior, but now I have platform to develop a record of outpreforming the S&P. As stated previously, a 20% annual ROI is something I easily expect to achieve. I'm hoping I can leverage this record into earning a position as hedge fund manager full time, and then growing it into an empire, similar to what Eddie Lampert did with ESL investments.

I would love to invite people from here to join the fund, but it's membership is currently restricted to members of Mensa, but I'm working to change this.

If anyone is interested in joining Mensa, the fund (which is not directly associated with Mensa), or just learning the basics of how to make your money work for you, let me know.

Westfall