Category: Money Tips Date: 2006-12-12
This is the Magellan fund manager Lynch Another successful real case.
In stock selection, the Lynch and Buffett, like, pay attention to common sense, to the high-tech stocks in general do not touch, do not touch the less successful. However, in choosing the timing, he was not by "common sense." The early eighties of last century, due to auto industry downturn, the stock market reaction to bad, especially the United States's third-largest car maker Chrysler is expected to bankruptcy, the stock only sell two U.S. dollars, Lynch began promising automotive industry, he first study of the Ford, but found that Chrysler better, just the company has more than one billion U.S. dollars in cash this matter are at least two years, it will not be bankrupt. As a result, spring and summer of 1982, he was eating a large number of Chrysler shares, accounting for 5% of the Magellan fund's assets. According to Lynch's statement, if the law allows, he would fund 10% -20% of assets are invested in the company's on.
Chrysler was rapidly rising, Lynch again in Ford and Volvo on Jiancang, until the value of these three stocks accounted for 8% of the total assets of Magellan, plus Saab and Toyota, auto stocks as a plate, accounting for Fund's total assets of 10.3%. Throughout 1984, Lynch has changed the previous practice of frequent trading, persist in buying ------ hold strategy, the Fund's top 10 the number of shares has not changed much, including the above-mentioned five auto stocks.
In the end, Lynch shares from Ford and Chrysler, respectively, two earned more than 100 million U.S. dollars in profit. Earned over from the Volvo on the 79 million U.S. dollars, creating the Magellan Fund, outstanding performance.
Recent China-related stocks on the NASDAQ became a capital of Shanda's pariah, the surface of the fourth quarter financial report because of the huge loss, but the real reason behind the hedge funds is the crazy speculation on the subject. First 8 months ago Shanda's shares have been astronomical Chaodao 42 U.S. dollars due to acquisition of Sina, when the market continued kind words. But now look at the huge sums spent a grand, it did not really get control of Sina is not a cost-effective trading. Are hedge funds did not know? Hedge funds are known, but the U.S. stock market is able to Jiequan short, and by subject matter to do is to short the high stock prices when making more profits.
Shanda's stock is now lying on the floor more than 10 U.S. dollars, overseas funds are Fangchuhualai, a grand transformation of successful online games, to continue to see a grand air. In fact, it is not true, grand huge loss in the fourth quarter provision for Korean companies because the fall in share prices decline in value. If investors invest according to common sense, you may have to trick in the overseas funds. Shanda huge loss in the fourth quarter is a good thing, a huge provision for bad debt burden, and then move forward with ease, stock prices should then be bullish.
Last month in the U.S., overseas fund managers said to me that the U.S. auto industry a serious saturation point, they will invest in China's auto stocks, when the Dongfeng Group only 2 yuan more than HK, but the stock has risen in January after a lapse of 3 yuan Hong Kong dollar upside objective bit into a 3.5 Hong Kong dollars. The shares in Dongfeng Motor was no response in the two months yesterday, watching television researcher at a large brokerage industry is still talking about auto stocks in accordance with international practice in relation to the low price-earnings ratio lower stock prices, sometimes broken down by "common sense" investment really want to cause delay.
Overseas funds are wolves instead of sheep, as the financial industry, the opening step in the era of margin trading, investment and sometimes does not work as "common sense" out of card, because "common sense" sometimes institutional trap.
