Bill Miller on Suicide Watch

[piezoe]

Quote from BeatingtheSP500:

This is a great illustration of why I follow the golden rule:

Never add to a losing position

Never, ever add to a losing position

Never add to a losing position

Which spurs this haiku:

Bill Miller on suicide watch,
Fannie Freddie about to take dirt nap,
Never add to losing position

Throughout the money
Legg and Mason scold
Miller starts leaving

Just to put things in perspective,
the rules are very different for a buy and hold investor than for a short term trader. ET is about trading, Bill Miller is about buy and hold value investing. I am not defending his decision to go into mortgages prematurely when at least three years ago the hand writing was on the wall, but Look at the S&P then look at the overall performance of his fund and I think you will see that there is no reason for him to be on suicide watch.

A value investor might do well to consider Frannie and Freddie now. I'm not personally, but the market has always had a penchant for over reaction.

 

[Daal]

Quote from piezoe:

A value investor might do well to consider Frannie and Freddie now. I'm not personally, but the market has always had a penchant for over reaction.

It might very well be just the opposite on low priced stocks. its human nature to try to make a lot of money with a little bit so people tend to bid up penny stocks higher than their true value.(indymac is still trading at around 0.09c and the FDIC has taken over, so there is no control benefit to buy shares there)

And for those who dont know why he was so heavy in financials I suspect it was because he thought it was 'cheap by historical standards', he's keen on the dip buying ignore fundamentals strategy that worked so well during this stock bullmarket

 

[BullsEye]

Quote from ByLoSellHi:

I still think even those that truly dislike Miller have to at least credit him with the longest positive run in the history of money managers (16 years).

That's 16 years straight, even during bear markets, that only ended last year.

I don't see how that can't be viewed with respect.

Besides, it's probably just his testosterone levels going haywire: http://findarticles.com/p/articles/mi_qn4188/is_20080415/ai_n25167854



BullsEye

 

[beep1]

Quote from Landis82:

Cramer is a self-promoting idiot.
I have no idea why people continue to mention his name in the context of an "expert".

Bill Miller.
He actually has a pretty successful track record over the past 15 years. His error in this instance is shocking. I'm unable to understand why he thought that the banks would have any real earnings anytime soon, given how bad their balance sheets are.

Cramer (and Bill?) are chosen people, and they can not fall because of the safety net.

Wake up Landis82, or you will continue to be an idiot gentile (as they call them).

 

[BlindLemonBoosh]

Quote from BeatingtheSP500:

"Fund manager are know to buy at the lows and seel at the high"

LOL most fund managers don't know their ass from their elbow.

Bill Miller confused
Glib traders rejoiced brightly
Legg Mason whispered

Nice.

http://www.badhaiku.com/index.php?startNum=41463

 

[capmac]

Legg Mason shares slide after ratings downgrade

Thursday September 4, 11:15 am ET

Legg Mason shares slide after analyst lowers rating to 'Underperform' on risks

NEW YORK (AP) -- Shares of Legg Mason Inc. slid Thursday after a Credit Suisse analyst downgraded the investment management firm to "Underperform" from "Neutral."

Analyst Craig Siegenthaler said a number of risks outweighed the stock's attractive valuation and other strengths.

Shares fell $4.48, or 9.5 percent, to $42.89 in morning trading. Shares have traded between $27.57 and $88.21 over the past 52 weeks.

The analyst said the potential increase in the number of investment management institutions for sale has lowered the private market value for Legg Mason. Legg Mason may also have to take further write downs over the next year, and deterioration in the company's compensation margin could hurt earning powers in 2010 or 2011, Siegenthaler wrote in a note to investors.

Last month, the investment manager reported a loss for its fiscal first quarter, stemming from charges of $155.4 million, or $1.09 per share, the company took to support three money market funds managed by a subsidiary.

In May, the company announced plans to raise $1 billion by selling a special kind of stock to help support the struggling company-run funds.

 

[Landis82]

Quote from beep1:

Cramer (and Bill?) are chosen people, and they can not fall because of the safety net.

Wake up Landis82, or you will continue to be an idiot gentile (as they call them).

Leave it to a fool such as yourself as to think that there is a "safety-net" for Bill Miller.

Welcome to ET, moron.

 

[capmac]

Report: Gov't may soon back Fannie, Freddie

Friday September 5, 5:36 pm ET

WSJ says gov't may soon back troubled mortgage finance giants Fannie Mae, Freddie Mac

WASHINGTON (AP) -- The government may soon step in to provide a financial boost to mortgage finance companies Fannie Mae and Freddie Mac, the Wall Street Journal reported late Friday.

The paper said an announcement "could come as soon as this weekend" but said exact details of the plan couldn't be learned. It said the plan would include executive changes at both companies.

http://biz.yahoo.com/ap/080905/mortgage_giants_crisis.html?.v=1

 

[capmac]

Talk about hitting the lotto, 80+ million shares GONE....