View Full Version : Dodd/Graham/Fisher Guy wants to get into M-FUNDS

01-15-2005, 06:32 PM
I know all about Graham and Fisher, read them fairly thoroughly for the ideas but I just don't have time (and frankly, it wouldn't pay me to do it) to crunch the numbers and research companies. There is no reason I shouldn't get a responsible fund, since I don't find it particularly recreational to do the research anyhow.

So, I would like to know if anyone can point me to a like-minded mutual fund.

Or, simply point me in the right direction, if this idea is nonsense. I've heard some argue that you either do your own research or just get an index fund. I'd like to hear that argument in more detail, if someone is offering it.

I've also heard that mutual fund strategy is quite different than stock strategy altogether. I'm not sure I understand this argument at all, since Berkshire Hathaway is doing just fine.

Costs obviously have to weigh against the benefits of management. If solid managment increases return 8% a year, but costs 9%, it's not worth it.

Thanks for the advice.

01-15-2005, 06:37 PM
PS -- I've got about $6000 to work with right now. I'm open to hearing about alternatives to equities entirely, too.

01-15-2005, 06:52 PM
I've heard some argue that you either do your own research or just get an index fund. I'd like to hear that argument in more detail, if someone is offering it.

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Use index funds and appropriate asset allocation.

Rather than make the argument here for index funds, I'd rather provide a few titles that will do the job. Read these books, and then re-read them.

1. Winning the Loser's Game, by Charles D. Ellis

2. Common Sense on Mutual Funds, by John C. Bogle

3. Asset Allocation, by Roger C. Gibson

01-16-2005, 12:12 AM
try vanguard.com, ishares.com, or pimco.com

01-16-2005, 12:55 PM
There is no reason I shouldn't get a responsible fund

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One reason is that there are so few responsible funds out there. Most of these funds can't beat the S&P 500, and those that do in any particular year aren't likely to repeat the following year. There are a rare few out there that consistently get a higher return, so you should seek out those managers and go with them.

Why don't you just pick up a couple Berkshire Hathaway B shares?

01-17-2005, 12:06 AM
The site www.portfolio123.com (http://www.portfolio123.com) lists value portfolios. You could use this site to pick your stocks.

01-17-2005, 12:35 AM
Bill Miller at Legg Mason Funds has a value fund that has consistently beat the market over the last decade. I don't own it and don't know the expenses, so I can't say if the track record of returns would compensate. Do some research and see if you think it would beat a Vanguard index fund over time.

Note: I own an assortment of index funds from Vanguard mostly because Vanguard is the chosen fund company for my employer's 401 K and I like the convenience. I also buy individual stocks outside of my 401K but not Mutual Funds.

01-17-2005, 01:06 AM
Miller is one of those few who consistently does well, which is why Legg Mason recruited him away from the Street.

01-17-2005, 06:14 AM
Very good, thank you for the information everyone.

Stone Face Jason
01-18-2005, 10:55 PM
Buy some indexes. People offering advice on specific strategies are usually only big ego LOSERS who think they can plot some graphs on their compooter and make money. The truth is that fund managers don't consistently beat the markets. Go for overall allocation based upon your age which has time and time again proven to be the biggest factor of success along with diversification. Individual stock picks are of less significance. This may sound too simple but it works, normal people like me cannot compete with Warren Buffet. Experimenting with a small portion of your portfolio can be fun if you think you have the knack for selecting the good ones.