Investment Theories by Brandes
We finally have a definite move in date. We will be closed February 17th,
moving the weekend of the 18th.
Hopefully we will be open for business in our new location on Tuesday, February 21st.
Being in a new location and the beginning of a new year, I
thought the enclosed paper produced by Brandes Investment Partners, one of our
value style managers, would be appropriate.
This publication is a bit lengthy and somewhat technical,
but well worth the read.
On page 1, Modern Portfolio Theory is
discussed. This is the basic concept
that many firms have been touting and charging big fees to implement for the
past decade or so. When I first read
about the Modern Portfolio Theory and looked into the report, I
disagreed with the industry as to what the conclusion was and how this was and
still is being marketed.
On page 2, Re-evaluating
Risk using One, Three, and Five-year Performance and Morningstar 4 and 5 Star
Ratings are discussed. Again
something we do not put a lot of credence in when picking an investment manager
or a particular mutual fund.
On page 2 and 3, Rethinking
Volatility and the Investor’s Mindset
is discussed. Back to intellect vs.
emotion (see our October ’05 newsletter).
And finally, on page 3 and 4, The Consistency Ratio and Q-Sort are
discussed. In our opinion, this is very
important when picking a mutual fund or investment manager.
I am looking forward
to seeing you at our new location very soon!