Implications of Goldcorp (GG) Proposed Merger
With Goldcorp's (GG) recent bid for Glamis (GLG) everybody is looking for the next takeover target. Mining has never been much of a growth industry except through price appreciation of the underlying commodity or acquisition. Harmony (HMY), Kinross (KGC), and Meridian (MDG) all look like takeover candidates. Silver Wheaton (SLW) could benefit from the Goldcorp-Glamis deal if they are allowed to sell Glamis' 25 million ounces of annual silver production. Goldcorp own 57% of Silver Wheaton.
Also keep an eye on energy stocks. If you are looking for energy exposure, you should look at Marathon (MRO) at these levels.
Note: I am long SLW
Also keep an eye on energy stocks. If you are looking for energy exposure, you should look at Marathon (MRO) at these levels.
Note: I am long SLW
posted by Big Ben at Thursday, August 31, 2006
1 Comments:
Question: Why is there such a disparity between the net real returns of 8-9% produced by our Mutual Fund Winners Spreadsheet (MFWS) since 1994 compared to the average investor’s net real returns of 1-2% after fees, expenses, taxes and inflation?
Rather than bemoan this sad state of affairs and since it is unrealistic to expect expenses, taxes and inflation to be drastically reduced any time soon, the investigation’s approach was to find out what controllable factor(s) are responsible for this corrosive drag on performance.
Since fees are controllable, the MFWS is confined only to no-load,no-fee funds. These funds incur no additional acquisition costs giving the fund investor an initial, but limited, boost in returns. While this was a valuable contribution, the investigation was not satisfied and probed further and deeper into the problem.
After 15 years of research using over 200 million data cells and some luck, we found the culprit. It was adverse selection, which is the systematic selection of more losers than winners usually on a 75:25 ratio basis. By reversing these odds, mathematically, many times more winners than losers are now easily and consistently picked.
A winner is defined as a fund whose performance consistently outperforms the Standard & Poor’s 500 Stock Index over time.
A loser is defined as a fund whose performance consistently under performs the Standard & Poor’s 500 Stock Index over time.
The MFWS was designed in 1994 to enable investors with no previous fund investment experience (or with loads of it) to pick winners, to overcome adverse selection, to become successful investors and take control of their financial lives.
Isn’t it time the mutual fund industry stop relying on empty slogans, shibboleths, canards, anecdotes… and begin using science to help 90 million fund investors achieve financial independence?
Arthur Regen
www.mutualfundwinnerpicks.com/
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